Key Takeaways
- The Competition Commission of Pakistan imposed a total penalty of Rs. 60 million on the All Pakistan Edible Oil Tanker Owners Association.
- The CCP found the association guilty of fixing transportation charges and allocating business among members.
- APEOTOA has 60 days to deposit the penalty and report compliance.
The Competition Commission of Pakistan (CCP) has imposed a significant penalty of Rs. 60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for engaging in anti-competitive practices, including fixing transportation charges and allocating business among members.
The CCP split the penalty into two parts: Rs. 30 million for price fixing and another Rs. 30 million for market allocation, both in violation of Section 4 of the Competition Act, 2010.
The Commission considered APEOTOA’s substantial market position, the six-year duration of the practices, and the involvement of senior management in determining the penalty.
The case began after the CCP detected circulars fixing transportation charges for edible oil, ghee, and fats transported from Karachi ports to destinations across Pakistan. A suo motu enquiry was launched in August 2024, and a search and inspection took place in February 2025.
Between 2019 and 2025, APEOTOA revised transportation rates 89 times, including 52 increases and 37 decreases. The Pakistan Vanaspati Manufacturers Association (PVMA) issued corresponding circulars communicating matching rate changes.
APEOTOA representatives acknowledged that transportation rates were determined through an agreement between the two associations. The CCP rejected APEOTOA’s argument that its rate circulars were only advisory, stating that even non-binding recommendations can restrict competition if they influence members’ independent commercial decisions.
The CCP also found that APEOTOA operated a queue system that allocated consignments among tanker owners, rather than allowing them to compete independently for business. A September 2023 circular imposed a Rs. 500,000 fine on each tanker and its owner for violating specified allocation conditions.
The relevant market was defined as road transportation services for edible oil, ghee, and fats across Pakistan. The CCP directed APEOTOA to immediately stop the anti-competitive practices, withdraw existing price circulars, and discontinue the queue system used to divide the market.
APEOTOA has 60 days to deposit the penalty and report compliance. Failure to comply may result in an additional penalty of Rs. 50,000 per day and possible criminal proceedings under Section 38.
