PSO mulls challenging CCP’s penalty order

KARACHI: Pakistan State Oil (PSO) is mulling to challenge the penalty slapped on the state-owned oil marketing company by the Competition Commission of Pakistan (CCP) in a court, it said on Thursday.

“Its (PSO) legal team is currently reviewing the matter,” the company said in a statement. 

In late November, the CCP imposed a penalty of Rs75 million on the company for falsely advertising that the use of the products (Premier XL’ and ‘Green Plus’) results in more mileage and improved performance of vehicle’s engine due to use of various additives. 

The commission took an action on a complaint that the company had been marketing such claims since 2003/04. Though it, “discontinued the use of such additives, while the name of the products and associated branding/ insignias launched alongside the products in 2003/04 remain in place to-date.”

The Competition Commission of Pakistan has been conducting inquiry into the case since November 2014 and found PSO violating Section 10(1) read with Section 10(2)(a) and 10(2)(b) of the Competition Act 2010, related to the advertisement and marketing campaign.

The company’s statement said PSO earlier used to mix additives in its former brand Premier XL.

“However, the company discontinued mixing the additives in 2012 and never again marketed it as an additized fuel.” 

It said the issue under consideration requires retrospective implementation.

“PSO has already discontinued its Premier XL brand and is already in the process of introducing new brand for diesel.” 

Pakistan State Oil  launched Altron Premium and Altron
X High Performance, upgraded RON fuels conforming to the government’s announcement of improved specifications.

“These are non-additized fuels, so any question of misleading the consumers is incorrect,” it added. 

The commission ordered the Pakistan State Oil to cease the use of ‘Green’ and
‘Premium’ in its branding/ insignia, including its trademarks/ logos on its products and in marketing, advertising, packaging, and carrying material including on its website and its point of sales. 

It asked the company to make appropriate changes to its branding and insignia within 30 days that remove the impression that the products and premium are environment-friendly.

Pakistan State Oil  was also asked to inform the public regarding the discontinuation of the use of additives in the products through appropriate clarifications in all English and Urdu dailies for a period of one week.