CCP Fines Fertilizer Sector PKR 375 Million for Price Fixing and Collusion

CCP Rejects Govt Directive Claim in Fertilizer Price-Fixing Case

By DTD- On Jun 3, 2025

ISLAMABAD – In a landmark move to uphold market competition and protect consumer rights, the Competition Commission of Pakistan (CCP) has imposed a total fine of PKR 375 million on six major urea manufacturers and an industry association for engaging in anti-competitive practices.

The CCP penalized each of the six companies — Fatima Fertilizer Limited, Fauji Fertilizer Company Limited, Fauji Fertilizer Bin Qasim Limited, Fatima Fertilizer Company Limited, Engro Fertilizer Company Limited, and Agritech Limited — with PKR 50 million each. Additionally, the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) was fined PKR 75 million.

The fines follow a suo motu inquiry by the CCP, which revealed that the companies, in coordination with FMPAC, had effectively fixed urea prices under the pretense of running a national awareness campaign. The investigation found that despite differing production costs, gas prices, and market shares, all companies charged an identical price of Rs. 1768 per urea bag — a clear indicator of collusion.

The CCP rejected the respondents’ defense that their pricing actions were in response to government directives, noting that no formal instructions mandated such coordination. Instead, companies exploited a government call for awareness to fix prices collectively, undermining market forces during the crucial Rabi and Kharif crop seasons.

The Commission also noted past warnings issued in 2010, 2012, and 2014 had gone unheeded, resulting in recurring violations that harmed farmers by restricting competition and inflating prices.

Chairman Dr. Kabir Ahmed Sidhu emphasized that industry associations must not act as platforms for sharing price-sensitive information. The CCP reaffirmed its commitment to curbing cartelization and promoting competitive practices for consumer welfare.

The public is encouraged to report anti-competitive behavior to the CCP via its helpline (0304-0875255) or email (miu@cc.gov.pk).