The Competition Commission of Pakistan (CCP) has imposed a Rs60 million penalty 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 separate penalties of Rs30 million for price fixing and Rs30 million for market allocation. According to the commission, the association violated Section 4 of the Competition Act, 2010, by collectively determining transportation rates for edible oil, ghee and fats and operating a queue-based system for distributing consignments.
The case followed market surveillance by the CCP, which detected circulars setting transportation charges for goods transported from Karachi Port and Port Qasim to destinations across Pakistan. The commission initiated a suo motu inquiry in August 2024 and conducted a search and inspection in February 2025.
The investigation found that transportation rates had been revised 89 times between 2019 and 2025, including 52 increases and 37 reductions. The CCP said matching rate changes were communicated through circulars issued by the Pakistan Vanaspati Manufacturers Association, supporting its finding that transportation charges were being collectively determined.
The commission also found that the association operated a queue and ticket system under which tanker owners were allocated consignments according to their position in the queue. A September 2023 circular reportedly imposed a Rs500,000 penalty on a tanker and its owner for violating specified allocation conditions. The CCP said the system restricted independent competition for business.
The CCP determined that the relevant market was road transportation services for edible oil, ghee and fats across Pakistan. In determining the penalty, the commission considered the association’s market position, the duration of the conduct, involvement of senior management and the continuation of rate revisions after enforcement proceedings had begun.
The association has been ordered to immediately stop the anti-competitive practices, withdraw existing price circulars and discontinue the queue system. 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 collect consignments regardless of association membership.
The penalty must be deposited and a compliance report submitted within 60 days. The CCP said failure to comply could result in an additional penalty of Rs50,000 per day and possible further legal proceedings under the Competition Act.
