The Competition Commission of Pakistan (CCP) has fined six major fertiliser companies and their industry association a total of Rs375 million for anti-competitive practices. Each company was fined Rs50 million, while their trade body, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), received a Rs75 million penalty. The action followed a suo motu inquiry into price-fixing practices.
According to the CCP, the companies — including Fatima Fertiliser, Fauji Fertiliser, Engro Fertiliser, and others — coordinated with FMPAC to fix urea prices under the cover of an awareness campaign. Though they claimed to act independently, the CCP found that all firms sold urea at the exact same price of Rs1,768 per bag, despite having different cost structures, gas prices, and market shares.
The Commission ruled that this behaviour clearly violated Section 4 of the Competition Act, 2010, which prohibits collusive pricing. The inquiry found no formal government directive that justified this coordination, rejecting the companies’ use of the “state action doctrine” as a defense. The CCP stressed that coordinated price announcements are not innocent disclosures but signs of concerted conduct.
The bench observed that such price-fixing harmed farmers during critical planting seasons like Rabi and Kharif. It also noted that prior warnings issued in 2010, 2012, and 2014 had failed to prevent recurring violations. The Commission highlighted that the companies used a federal directive for farmer awareness as a cover to manipulate market prices.
CCP Chairman Dr. Kabir Ahmed Sidhu urged all industry associations to avoid sharing price-sensitive information. He warned that violators could face heavy financial penalties — up to Rs75 million or 10% of annual turnover — for entering into illegal agreements without prior approval. This crackdown follows the Commission’s recent fine on a housing society for misleading advertising.