Islamabad: (RightNow) The Competition Commission of Pakistan has proven cartel allegations against the All Pakistan Edible Oil Tanker Owners Association. The association has been fined Rs 6 crore for fixing transportation rates for edible oil.

According to the commission, Rs 3 crore was fined for collective rate setting and an additional Rs 3 crore for business distribution through slips and turns. The CCP has ordered the immediate cessation of these systems.

The commission stated that freight rates were increased by 0.75% with diesel price hikes and decreased by 0.5% with reductions. Over 6 years, collective adjustments were made 89 times.

The CCP revealed that tanker owners offering discounted rates were threatened with blacklisting, while mills refusing to accept non-discounted rates were threatened with supply cuts.

It is noteworthy that the transport fare agreement was established in 2011 and updated in 2022. The commission seized 6 years of rate circulars and agreements during their investigation.