KARACHI: CCP Grants Time-Bound Exemption for Aramco-GO Petroleum Product Supply Agreement
The Competition Commission of Pakistan has approved a time-bound exemption on relevant clauses of a product supply agreement between Saudi oil giant Aramco and Gas & Oil Pakistan Ltd., known as GO Petroleum, for the import and sale of petrol and diesel products to Pakistan, the CCP announced on Tuesday.
Parties Involved
Aramco Trading Co. Fujairah FZE Ltd. is a global energy and chemicals company, while GO Petroleum is a Pakistani oil-marketing company with retail outlets across the country selling petrol, diesel, and lubricants.
Agreement Details
Under the agreement, ATC Fujairah will supply essential petroleum products, mainly petrol and diesel, to GO Petroleum’s outlets to meet their demand.
Economic Benefits and Conditions
The CCP stated that the arrangement is expected to benefit Pakistani consumers by achieving economies of scale in procurement. The exemption granted includes conditions to prevent anti-competitive activities and does not cover pricing terms.
Exemption Duration
The exemption is valid until June 2026, with the possibility of extension. Both parties can approach the CCP for an extension by providing necessary details and demonstrating the benefits to the distribution network and market competition.
Historical Context
Last month, the CCP approved Aramco’s acquisition of a 40 percent stake in GO Petroleum, marking the Saudi company’s entry into Pakistan’s fuels retail market. The acquisition aims to boost foreign direct investment in Pakistan’s energy sector and contribute to economic growth.
Bilateral Trade and Investment
Pakistan and Saudi Arabia have been strengthening their economic ties, with significant investment deals signed in 2019. The countries are focused on increasing bilateral trade and investment, with the Kingdom reaffirming its commitment to a substantial investment package in Pakistan.