The Competition Commission of Pakistan (CCP) has approved a time-bound exemption for the product supply agreement between Aramco Trading (ATC) Fujairah FZE Ltd and Gas & Oil Pakistan Ltd (GO Petroleum). This agreement allows GO Petroleum to import and sell gasoline and diesel products from ATC Fujairah in Pakistan.
ATC Fujairah, based in the UAE, is a leading global energy and chemicals company. GO Petroleum, an Oil Marketing Company (OMC) in Pakistan, operates a network of retail outlets selling petrol, diesel, and lubricants.
The agreement enables ATC Fujairah to meet GO Petroleum’s demand for essential petroleum products, primarily gasoline and diesel. The parties claim that this arrangement will achieve economies of scale in procurement for GO Petroleum, potentially resulting in better prices for Pakistani consumers. The exemption pertains to the exclusivity clauses requiring GO Petroleum to source 100% of its imported product demand from ATC Fujairah.
CCP evaluated how this arrangement would enhance the distribution network and benefit consumers. They also examined the status of regulatory approvals for fuel stations, terminals, and storage depots. The CCP granted the exemption, considering that the economic benefits outweigh any anti-competitive effects, and stipulated conditions to ensure compliance with competitive practices. Notably, the exemption does not cover product pricing terms.
Additionally, any off-specification products must receive approval from the relevant sector regulator. The applicants must also secure the necessary approvals for their terminals and storage facilities.
The CCP granted this exemption until June 2026, with the possibility of extension if the parties can demonstrate continued benefits in distribution and competition.
