The Competition Commission of Pakistan (CCP) has fined an association representing edible oil tanker owners Rs. 60 million for fixing transportation rates and controlling how business was distributed among its members.
The All Pakistan Edible Oil Tanker Owners Association (APEOTOA) was fined Rs. 30 million for price fixing and another Rs. 30 million for allocating the market among tanker owners, in violation of Section 4 of the Competition Act, 2010.
The case followed CCP’s market surveillance, which detected circulars setting transportation charges for edible oil, ghee, and fats moved from Karachi ports to different parts of Pakistan.
The Commission launched a suo motu enquiry in August 2024 and searched APEOTOA’s premises in February 2025.
The investigation found that the Association changed transportation rates 89 times between 2019 and 2025, with 52 increases and 37 decreases.
The CCP said matching rate changes were communicated through circulars issued by the Pakistan Vanaspati Manufacturers Association (PVMA). APEOTOA representatives also acknowledged that the transportation rates were determined under an agreement between the two associations.
APEOTOA argued that its rate circulars were only recommendations. The CCP rejected this position, saying even non-binding recommendations from a trade association can hurt competition when they influence members’ independent pricing decisions.
The Commission also found that APEOTOA used a queue system to distribute consignments among tanker owners instead of allowing them to compete independently for transport business.
Under the system, the Association issued parchis for lifting consignments and required tanker owners to follow its allocation rules. A September 2023 circular also set a Rs. 500,000 fine for a tanker and its owner for violating specified conditions.
The CCP identified the relevant market as road transportation services for edible oil, ghee, and fats across Pakistan.
In deciding the penalty, the Commission considered the Association’s significant market position, the conduct continuing for nearly six years, involvement of senior management, and continued rate revisions after enforcement proceedings had started.
The CCP has ordered APEOTOA to immediately stop the practices, withdraw its existing rate circulars, and end the queue system used to divide business among tanker owners.
The Association must also publish notices in two Urdu and two English national newspapers stating that tanker owners can independently set their transportation rates and lift consignments regardless of whether they are members of the Association.
APEOTOA must deposit the Rs. 60 million penalty and submit its compliance report within 60 days. Failure to comply could lead to an additional penalty of Rs. 50,000 per day and possible criminal proceedings under Section 38.
