CCP Fines Edible Oil Tankers Rs60m Over Price Fixing

News Desk
ISLAMABAD: The Competition Commission of Pakistan (CCP) has slapped a hefty penalty of Rs60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for orchestrating illegal price-fixing schemes and monopolistic market allocations.
The punitive action, executed under Section 4 of the Competition Act 2010, marks a major regulatory crackdown against anti-competitive syndicates manipulating essential commodity supply chains across the country.
According to the antitrust watchdog, the penalties are divided equally, with Rs30 million imposed for price-fixing and another Rs30 million for controlling business allocations via a restrictive queuing system. The investigation gained momentum following comprehensive market surveillance that uncovered illicit circulars dictating uniform transportation charges for edible oil, ghee, and essential fats from Karachi ports to diverse destinations nationwide.
Initiating a suo motu inquiry in August 2024, followed by a decisive search inspection in February 2025, investigators unearthed tangible proof that APEOTOA revised transport rates an astounding 89 times between 2019 and 2025.
The inquiry further revealed collusion between industry stakeholders, noting that matching rate adjustments were systematically communicated through corresponding circulars issued by the Pakistan Vanaspati Manufacturers Association (PVMA).
Furthermore, representatives from the tanker association openly acknowledged during proceedings that transport tariffs were artificially managed through bilateral association agreements, decisively undermining free-market principles.
As consumer watchdogs hail the regulatory intervention, the ruling sets a crucial precedent for dismantling cartel operations that inflate everyday food prices.
The commission has firmly dismissed defensive pleas presented by the tanker association, signaling zero tolerance for practices that exploit national supply chains and burden ordinary citizens amid persistent inflationary pressures.