Document Actions
No Operating Licences For Gas Companies Who Fail To Adhere To Charter
The Department of Minerals and Energy has warned companies in the petroleum industry against failure to adhere to the requirements of the Petroleum Products Amendment Act.
The Department’s Chief Director for Hydrocarbons Nhlanhla Gumede said the recently amended law, among other things, required companies to demonstrate the extent to which they were implementing the transformation charter before they could be granted licenses. This relates to the Transformation Charter for South African Petroleum and Liquid Fuels Industry.
“The department won’t grant licenses to companies that have failed to embrace the transformation charter,” he said.
The licensing framework is aimed at addressing the challenges inherent in the existing value chain, which include issues of industry transformation, profitability and lack of investment in some parts of the petroleum value chain.
Parliament approved the amended Petroleum Products Act in March, which aims to improve the efficiency and viability of the petroleum industry in the country, especially in the retail sector.
Section (2A) (1) of the Act prohibits any person from developing a site, manufacturing, wholesaling or retailing petroleum products without an applicable license issued by the Controller of Petroleum Products.
Nevertheless, companies have until 15 September to apply for the licence without which they would not be allowed to open for business.
And anyone operating without it would be found guilty and will be liable for a fine up to R1 million.
Mr Gumede said one of the main objectives of the amended law was to ensure that there was adequate fuel supply in the country.
“The act makes provisions that ensure that last year’s fuel crisis does not recur.”
He said it would also help in addressing the profitability and viability concerns raised by small businesses operating in the petroleum sector.
“It will promote small to medium entrepreneurs by ensuring that they get the necessary support and assistance,” he said.
BuaNews
“The department won’t grant licenses to companies that have failed to embrace the transformation charter,” he said.
The licensing framework is aimed at addressing the challenges inherent in the existing value chain, which include issues of industry transformation, profitability and lack of investment in some parts of the petroleum value chain.
Parliament approved the amended Petroleum Products Act in March, which aims to improve the efficiency and viability of the petroleum industry in the country, especially in the retail sector.
Section (2A) (1) of the Act prohibits any person from developing a site, manufacturing, wholesaling or retailing petroleum products without an applicable license issued by the Controller of Petroleum Products.
Nevertheless, companies have until 15 September to apply for the licence without which they would not be allowed to open for business.
And anyone operating without it would be found guilty and will be liable for a fine up to R1 million.
Mr Gumede said one of the main objectives of the amended law was to ensure that there was adequate fuel supply in the country.
“The act makes provisions that ensure that last year’s fuel crisis does not recur.”
He said it would also help in addressing the profitability and viability concerns raised by small businesses operating in the petroleum sector.
“It will promote small to medium entrepreneurs by ensuring that they get the necessary support and assistance,” he said.
BuaNews
