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 engaging in anti-competitive practices, including fixing transportation charges and allocating business among tanker owners.
The CCP imposed Rs. 30 million each for price fixing and market allocation, finding the association in violation of Section 4 of the Competition Act, 2010.
The case followed market surveillance by the CCP, which identified circulars fixing transportation charges for edible oil, ghee, and fats transported from Karachi ports to destinations across Pakistan. The Commission initiated a suo motu inquiry in August 2024 and conducted a search and inspection in February 2025.
According to the inquiry, APEOTOA revised transportation rates 89 times between 2019 and 2025, including 52 increases and 37 decreases. The Commission found that corresponding circulars issued by the Pakistan Vanaspati Manufacturers Association (PVMA) communicated matching rate changes.
The CCP rejected APEOTOA’s argument that its rate circulars were only advisory. It held that recommendations issued by a trade association can restrict competition when they influence members’ independent commercial decisions.
The Commission also found that APEOTOA operated a queue system for allocating consignments among tanker owners. Under the system, the association issued parchis for lifting consignments and imposed penalties for violations. A September 2023 circular prescribed a Rs. 500,000 fine for each tanker and owner violating specified allocation conditions.
The CCP determined the relevant market as road transportation services for edible oil, ghee, and fats across Pakistan. In determining the penalty, it considered factors including the association’s market position, the nearly six-year duration of the conduct, involvement of senior management, and continued rate revisions after enforcement proceedings began.
APEOTOA has been directed to immediately stop the anti-competitive practices, withdraw existing price circulars, and discontinue the queue system used to allocate business. It must also publish notices in two Urdu and two English national newspapers stating that tanker owners are free to independently determine transportation rates and lift consignments regardless of association membership.
The penalty must be deposited and compliance reported within 60 days. Failure to comply may result in an additional penalty of Rs. 50,000 per day and possible criminal proceedings under Section 38 of the Competition Act.
