A total fine of Rs60 million has been imposed on an edible oil tanker association for allegedly fixing transportation prices and allocating the market among its members.
The penalties include Rs30 million for price fixing and another Rs30 million for market allocation.
The case emerged from market surveillance that identified circulars setting transportation charges for edible oil, ghee and fats transported from Karachi ports to destinations across Pakistan.
An inquiry was launched in August 2024, followed by a search inspection in February 2025. The investigation found that transportation rates were revised 89 times between 2019 and 2025, including 52 increases and 37 reductions.
The investigation also found that matching rate changes were communicated through circulars issued by a manufacturers’ association. Representatives of the tanker association acknowledged that transportation rates were determined through an agreement between the two associations.
The commission rejected the argument that the rate circulars were only advisory, stating that even non-binding recommendations by trade associations can restrict competition by influencing the independent commercial decisions of their members.
The commission also referred to a Supreme Court ruling that competitors must remain free to independently determine their prices.
Separately, the investigation found that a queue-based system was used to distribute consignments among tanker owners rather than allowing them to compete independently for business.
Under the system, slips were issued for the collection of consignments and compliance was enforced through penalties. A circular issued in September 2023 provided for a fine of Rs500,000 each on a tanker and its owner for violating specified allocation conditions.
The relevant market was determined as road transportation services for edible oil, ghee and fats across Pakistan.
