CCP imposes Rs 8.64b penalty on EFL, FFC


The Competition Commission of Pakistan has imposed a penalty in the sum of Rs 8.64 billion on part of EFL and FFC for abuse of their dominant position through unreasonable price increase.
A spokesman for the commission said that commission took notice on its own of a price increase carried out by all the Urea Manufacturers (‘undertakings’) in Pakistan in December 2010 that continued through 2011. The Commission constituted an Enquiry Committee to identify whether the subject price increases amounted to a contravention of the provisions of the Competition Act, 2010 (the “Act”). In this regard the Enquiry Report concluded on 25-06-2012, carried out an analysis of factors such as (i) Gas curtailment (ii) Input Costs(iii) Profit margins (iv) Subsidies, government policies etc to reach at the conclusion that the undertakings found to be individually as well as collectively dominant, abused this position in carrying out unreasonable increase in prices in violation of Clause (a), Subsection (3) of Section 3 of the Act. All urea manufacturers were issued Show Cause Notices (SCN) for individual and collective abuse of dominant positi


  1. CCP cannot even fathom the constraints under which a business is to be operated in Pakistan. Extra has to be paid to get the consistent supply of Natural GAS, electricity and there are so many factors extorting money, called hidden costs, Actual cost of product is some time 2 times than the cost that an auditors or fact finder may determine.

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