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Pakistan tanker owners’ association fined 60 million rupees — Dawn

UA.NEWS 20 September 2026 07:13
Pakistan tanker owners’ association fined 60 million rupees — Dawn

The Competition Commission of Pakistan has fined the All Pakistan Edible Oil Tankers Owners Association 60 million Pakistani rupees. According to Dawn, the regulator found that the association fixed transport rates and allocated orders among tanker owners through a restrictive queue system.

Fine for pricing and market allocation

The commission imposed fines of 30 million rupees each for price fixing and market allocation. Proceedings began after market monitoring, during which the regulator identified circulars setting transport rates for edible oil, ghee and fats from Karachi ports to various regions of Pakistan.

The regulator launched an investigation on its own initiative in August 2024 and conducted an inspection with a review of materials in February 2025. According to the commission, materials seized during the inspection showed that the association revised transport rates 89 times in 2019–2025: raising them 52 times and reducing them 37 times.

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Queue for receiving cargo

Relevant circulars from the Pakistan Vanaspati Manufacturers Association reported similar rate changes. Representatives of the tanker owners’ association acknowledged that the two organizations agreed on transport rates, the commission said.

The association argued that its rate circulars were only advisory. The regulator rejected this argument, noting that even non-binding recommendations by a trade association may restrict competition if they affect the independent commercial decisions of market participants. The commission also referred to a ruling by Pakistan’s Supreme Court in the case of the Pakistan Vanaspati Manufacturers Association, according to which competitors must set prices independently.

The commission concluded that the queue system allocated cargo among tanker owners instead of allowing free competition for orders. The association issued tokens for receiving cargo and monitored compliance with this system. A circular from September 2023 provided for a fine of 500,000 rupees for each party — the tanker and its owner — for violating the established allocation terms.

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