Inquiry against PSO begins

Published Aug 08, 2012 10:33pm

ISLAMABAD, Aug 8: The Competition Commission of Pakistan (CCP) has began a probe into allegations that the Pakistan State Oil (PSO) is forcefully selling lube oil to its cartage contractors by deducting the price of such products from the payments due for cartage services.

The inquiry was initiated after the commission received several complaints from some PSO cartage contractors.

Given the potentially anti-competitive nature of such actions, CCP has started to probe the matter in detail and solicited PSO’s response in the matter. However, despite a reminder, the reply is still awaited.

Forced sale of products may constitute an anti-competitive practice prohibited by the Competition Act, 2010.

The practice of forced sales, which places unrelated obligation on trading parties for the conclusion of contracts, is barred under law and can amount to a prohibited agreement/practice or an abuse of dominance under the Act.

It would be pertinent to mention that CCP has consistently strived to promote competition and curb anti-competitive behavior in Pakistan economy.


Do you have information you wish to share with Dawn.com? You can email our News Desk to share news tips, reports and general feedback. You can also email the Blog Desk if you have an opinion or narrative to share, or reach out to the Special Projects Desk to send us your Photos, or Videos.

More From This Section

Cautious optimism

If recent history is any guide, it will take much more than merely a tweaking of interest rates to ...

Looking for a ‘bailout’

The implicit reliance on the government by some businesses — assumed in the shape of a bailout during times of distress

Comments (0) Closed