DNA

ISLAMABAD, MAY 21, 2024: The Competition Commission of Pakistan (CCP) has granted a temporary exemption to Aramco Trading Fujairah and Gas & Oil Pakistan.

The exemption applies to their product supply agreement for importing and selling gasoline and diesel in Pakistan.

Aramco Trading Fujairah, based in the UAE, is a major energy and chemicals company.

Gas & Oil Pakistan Ltd is a Pakistani Oil Marketing Company with a network of retail outlets.

The agreement aims to meet GO Petroleum’s demand for gasoline and diesel at its outlets.

The parties claim the arrangement will lead to better prices for Pakistani consumers through economies of scale.

The CCP sought information on how the agreement would benefit consumers and enhance the distribution network.

They also requested approvals from relevant regulators for fuel stations, terminals, and storage depots.

The CCP grants exemptions under Section 9 of the Competition Act, 2010, ensuring economic benefits outweigh anti-competitive effects.

The exemption includes conditions that both parties must avoid anti-competitive activities.

The exemption does not approve pricing terms and mechanisms for the products.

Approvals for certain off-specification products must be obtained from the concerned sector regulator.

Applicants must also ensure necessary approvals for terminals and storage facilities used in the agreement.

The exemption is granted until June 2026.

For an extension, applicants must provide details and benefits accrued from the agreement to the CCP.