The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs. 60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for fixing transportation charges and allocating business among tanker owners.
The CCP imposed separate penalties of Rs. 30 million for price fixing and Rs. 30 million for market allocation, finding the practices in violation of Section 4 of the Competition Act, 2010.
While determining the penalty, the Commission considered APEOTOA’s substantial market position, the conduct’s nearly six-year duration, involvement of senior management, and continued rate revisions after enforcement proceedings began.
The CCP has 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.
Background
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. The Commission launched a suo motu enquiry in August 2024 and conducted a search and inspection in February 2025.
The enquiry found that APEOTOA revised transportation rates 89 times between 2019 and 2025, 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 Commission rejected APEOTOA’s argument that its rate circulars were only advisory. It held that even non-binding recommendations issued by a trade association 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.
The Association issued parchis for lifting consignments and enforced compliance with the allocation system. A September 2023 circular imposed a Rs. 500,000 fine on each tanker and its owner for violating specified allocation conditions.
The CCP defined the relevant market as road transportation services for edible oil, ghee, and fats across Pakistan.
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