Aramco Trading Company (ATC) Fujairah and Gas & Oil Pakistan Ltd (GO Petroleum) have received a temporary exemption from the state-backed Competition Commission of Pakistan (CCP) to import and sell gasoline and diesel products in Pakistan.
ATC Fujairah, a fully-owned subsidiary of the oil giant Saudi Aramco, is one of the world's leading integrated energy and chemicals companies. Additionally, Saudi Aramco holds a 40% share in GO Pakistan, which operates a widespread network of retail outlets selling petrol, diesel, and lubricants across the country.
Under this agreement, ATC Fujairah aims to supply GO Petroleum with the necessary petroleum products for its retail outlets. The parties informed the CCP that this arrangement is expected to achieve procurement economies of scale for GO Petroleum, potentially resulting in better prices for Pakistani consumers. Consequently, the exemption sought was for the exclusivity aspects of the commercial agreement to supply 100% of the imported products demanded by GO Petroleum’s retail outlets.
The CCP specified that the exemption comes with certain conditions, requiring both parties to avoid anti-competitive practices. Notably, the exemption does not include approval of any pricing terms or mechanisms related to the products. The exemption is valid until June 2026, with a possibility of extension if both applicants can demonstrate the benefits accrued to the improved distribution network of petroleum products.
The CCP expressed hope that this arrangement will enhance Pakistan’s distribution network, ultimately benefiting consumers. The temporary exemption is aimed at fostering a more efficient supply chain and ensuring that the procurement benefits translate into cost savings for the end consumers in Pakistan.