Oil Tanker Owners Punished for Rigging Market

Meanwhile, the Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs.

Key points

• The enquiry discovered that APEOTOA revised transportation rates 89 times between 2019 and 2025, including 52 increases and 37 decreases.
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• The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs.
• The case began after the CCP detected circulars fixing transportation charges for edible oil, ghee, and fats transported from Karachi ports to destinations throughout Pakistan.

Meanwhile, the Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs. 60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for fixing transportation charges and allocating business among tanker owners.

In practice, the CCP imposed separate penalties of Rs. 30 million for cost fixing and Rs. 30 million for market allocation, finding the practices in violation of Section 4 of the Competition Act, 2010. CCP and NAB to Work Together Against Corruption.

While determining the penalty, the Commission considered APEOTOA's substantial market position, the conduct's almost six-year duration, involvement of senior management, and continued rate revisions after enforcement proceedings began.

For context, the CCP has directed APEOTOA to immediately stop the anti-competitive practices, withdraw existing cost circulars, and discontinue the queue system employed to divide the market.

APEOTOA has 60 days to deposit the penalty and report compliance. Failure to comply may result in an extra penalty of Rs. 50, 000 per day and feasible criminal proceedings under Section 38.

Notably, the case began after the CCP detected circulars fixing transportation charges for edible oil, ghee, and fats transported from Karachi ports to destinations throughout Pakistan. The Commission introduced a suo motu enquiry in August 2024 and conducted a search and inspection in February 2025.

In practice, the enquiry discovered that APEOTOA revised transportation rates 89 times between 2019 and 2025, including 52 increases and 37 decreases. The Pakistan Vanaspati Manufacturers Association (PVMA) issued corresponding circulars communicating matching rate changes.

APEOTOA representatives acknowledged that transportation rates were determined through an agreement between the two associations.

For context, the Commission rejected APEOTOA's argument that its rate circulars were only advisory. It held that even non-binding recommendations issued by a trade association can restrict competition if they influence members' independent commercial decisions.

In practice, the CCP additionally identified that APEOTOA operated a queue system that allocated consignments among tanker owners rather than allowing them to compete independently for business. CCP Gets Forensic Backing for Competition Law Violation Cases.

Meanwhile, the Association issued parchis for lifting consignments and enforced compliance with the allocation system. A September 2023 circular imposed a Rs. 500, 000 fine on each tanker and its owner for violating specified allocation conditions.

Meanwhile, the CCP defined the relevant market as road transportation services for edible oil, ghee, and fats throughout Pakistan. Stay Connected with ProPakistani.

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For now, oil Tanker Owners Punished for Rigging Market remains the part of the story worth watching, and further updates are likely as more details are confirmed.