CCP initiates enquiry into possible malpractices in petroleum sector


ISLAMABAD: The Competition Commission of Pakistan (CCP) has taken notice of public concerns and complaints about the shortage of petroleum products in the country and has initiated an enquiry to see whether such a shortage is the result of any anti-competitive activity.

The CCP is empowered under the Competition Act, 2010, to ensure that businesses do not engage in anti-competitive activities including abuse of dominant position or cartelization that may result in the shortage of supplies or an unreasonable increase in prices of products.

“The sudden shortage of fuel across the country at a time when the government has reduced prices followed by low demand due to Covid-19 pandemic raises a suspicion that artificial shortage might have been created either by limiting supply at the OMCs, or hoarding at the distribution level,” the commission said in a statement issued on Thursday.

Furthermore, the possibility of abuse of dominant position by these companies in certain areas cannot be ruled out. The government’s decision to provide relief to the consumers by reducing the price of fuel appears to have irked the business undertakings to make the desired profits.

The CCP’s enquiry will determine the possibility of the existence of any anti-competitive practices causing the shortage of fuel in the country and the undertakings involved in it.

The enquiry will further examine why the impact of the reduction in the prices of oil have not resulted in the corresponding reduction in the prices of the lubricants and other oil-based products, including the prices of hi-octane, which are primarily deregulated products.


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