ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for fixing transportation charges and allocating business among tanker owners via a restrictive queuing system, in violation of Section 4 of the Competition Act 2010.

The commission imposed Rs30m each for price fixing and market allocation. The case originated from CCP’s market surveillance, which detected circulars fixing transportation charges for edible oil, ghee and fats from Karachi ports to destinations across Pakistan.

The commission initiated a suo motu inquiry in August 2024 and carried out a search inspection in February 2025. The inquiry found, based on material impounded during the search, that APEOTOA revised transportation rates 89 times between 2019 and 2025, including 52 increases and 37 decreases.

Corresponding circulars issued by the Pakistan Vanaspati Manufacturers Association (PVMA) communicated matching rate changes, while APEOTOA representatives acknowledged that the two associations set transport rates through an agreement.

The commission rejected APEOTOA’s claim that its rate circulars were merely advisory, holding that even non-binding recommendations from a trade association may restrict competition by influencing members’ independent commercial decisions.

It also relied on the Supreme Court’s judgment in the PVMA case, affirming that competitors must remain free to determine their prices independently. The commission separately found that APEOTOA’s queue system allocated consignments among tanker owners instead of allowing independent competition for business.

The association issued slips (parchis) for lifting consignments and enforced compliance with the system. A September 2023 circular prescribed a Rs500,000 fine each for a tanker and its owner for violating specified allocation conditions. The commission determined the relevant market as road transportation services for edible oil, ghee, and fats across Pakistan.

Published in Dawn, September 20th, 2026