NaCC scrutinises fuel imports
The National Petroleum Corporation wants exemption from the Competition Act and its competitors are requested to make submissions to the Competition Commission.
The Namibia Competition Commission (NaCC) is requesting input from interested and affected parties on the reinstatement of the National Petroleum Corporation of Namibia's (Namcor) intent to have 50% of the fuel import mandate restored.
Should Namcor succeed in having the fuel import mandate restored, it would be responsible for importing up to 50% of the fuel used in Namibia. NaCC spokesperson Dina Gowases confirmed that Namcor had applied for exemption from certain provisions of the Competition Act for ten years.
Namcor had in the past made repeated attempts to have its fuel import mandate restored. The state oil and gas company was stripped of the responsibility by former mines minister Isak Katali after this mandate had led to its technical insolvency.
Namcor in 2008 signed a 50-50 fuel supply deal with Glencore and its subsidiary Petroneft International. The agreement was cancelled in 2010, after the government said it was not favourable to Namibia at the time.
Gowases said Namcor's exemption application related to a category of proposed decisions to be issued in terms of the Petroleum Products and Energy Act and the Petroleum Products Regulations to amend the wholesale licences of the present importers of petroleum products. This would impose conditions on the percentage volumes for the procurement of petroleum products, and reinstate the mandate to import 50% of Namibia's petroleum needs to Namcor. She stressed that this would not determine whether or not Namcor was entitled to the reinstatement of the 50% petroleum importation mandate.
“That is a power that is vested with the mines minister in terms of the relevant legislation that governs the petroleum industry.”
According to her the exemption application that is currently before the Commission is aimed at enabling the Commission to assess whether there are exceptional and compelling public policy justifications that would warrant the exemption of the reinstatement of the mandate from the provisions of the Competition Act.
As part of the Commission's consideration of Namcor's exemption application, the Commission is therefore seeking input from interested parties such as Namcor's customers and competitors.
In line with the Competition Act the Commission has published a notice in the Government Gazette inviting interested parties to submit within 30 days any queries or written representations that they may wish to make concerning the application.
“Provided that there are exceptional and compelling public policy reasons for doing so, the Commission will after consideration of the application and any representations submitted by interested persons make a determination on whether or not to grant or refuse the exemption application provided that there are exceptional and compelling public policy reasons,” said Gowases.
ELLANIE SMIT
Should Namcor succeed in having the fuel import mandate restored, it would be responsible for importing up to 50% of the fuel used in Namibia. NaCC spokesperson Dina Gowases confirmed that Namcor had applied for exemption from certain provisions of the Competition Act for ten years.
Namcor had in the past made repeated attempts to have its fuel import mandate restored. The state oil and gas company was stripped of the responsibility by former mines minister Isak Katali after this mandate had led to its technical insolvency.
Namcor in 2008 signed a 50-50 fuel supply deal with Glencore and its subsidiary Petroneft International. The agreement was cancelled in 2010, after the government said it was not favourable to Namibia at the time.
Gowases said Namcor's exemption application related to a category of proposed decisions to be issued in terms of the Petroleum Products and Energy Act and the Petroleum Products Regulations to amend the wholesale licences of the present importers of petroleum products. This would impose conditions on the percentage volumes for the procurement of petroleum products, and reinstate the mandate to import 50% of Namibia's petroleum needs to Namcor. She stressed that this would not determine whether or not Namcor was entitled to the reinstatement of the 50% petroleum importation mandate.
“That is a power that is vested with the mines minister in terms of the relevant legislation that governs the petroleum industry.”
According to her the exemption application that is currently before the Commission is aimed at enabling the Commission to assess whether there are exceptional and compelling public policy justifications that would warrant the exemption of the reinstatement of the mandate from the provisions of the Competition Act.
As part of the Commission's consideration of Namcor's exemption application, the Commission is therefore seeking input from interested parties such as Namcor's customers and competitors.
In line with the Competition Act the Commission has published a notice in the Government Gazette inviting interested parties to submit within 30 days any queries or written representations that they may wish to make concerning the application.
“Provided that there are exceptional and compelling public policy reasons for doing so, the Commission will after consideration of the application and any representations submitted by interested persons make a determination on whether or not to grant or refuse the exemption application provided that there are exceptional and compelling public policy reasons,” said Gowases.
ELLANIE SMIT
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