Pakistan’s CCP begins hearings on fertilizer firms’ price fixing

The Competition Commission of Pakistan (CCP) has begun hearings on a case involving allegations of collusive pricing by members of the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC). The inquiry stems from an advertisement issued by FMPAC on November 21, 2021, which announced a ‘Maximum Retail Price (MRP) of Urea’ amidst rising prices and reported shortages.

Following show cause notices to FMPAC and six leading fertilizer manufacturers for potentially violating Section 4 of the Competition Act, 2010, the CCP initiated an investigation. The inquiry revealed uniform pricing patterns across various districts among manufacturers, despite differing cost structures due to variations in input costs like fuel and gas, crucial for production.

The CCP’s investigation suggests that the advertisement, which set uniform prices, may constitute a violation under Section 4(2)(a) of the Competition Act, 2010. The commission has previously cautioned against associations making pricing decisions that restrict competition.

Nature And Art: Enhancing Children’s Wellbeing And Climate Anxiety