Competition Commission exemption could ensure stability of liquid fuel supply to industry
10 October 2011 - Last Friday the Competition Commission of South Africa granted the petroleum and refinery industry an exemption following an application by SAPIA, the South African Petroleum Industry Association, in April 2010. The exemption enables the participants in the various stages of the supply chain to enter into the collaborative exchange of information necessary to ensure the stability of supply, as well as efficient use of the supply chain facilities. The application, which asks for exemption until December 2015, was granted on a short-term basis by the Competition Commission in 2010 and covers a wide range of agreements and practices in the petroleum and refinery industry.
The exemption was applied for and granted in the midst of an ongoing investigation by the Competition Commission into the alleged anti-competitive conduct in relation to a range of products in the petroleum value chain.
"The exemption will go a long way in ensuring the continuity and stability of liquid fuel supply to the various sectors and geographical locations of the South African economy," says Avhapfani Tshifularo Executive Director of SAPIA.
"We are pleased that the exemption has been granted as it has been almost 18 months since the exemption application was submitted and, as the process is long, frustrating and expensive, we would not like to start the process over again."
As set out in the short-term exemption, granted during 2010 to accommodate the FIFA Soccer World Cup, the exemption does not extend to the wholesale, commercial and retail trade of liquid fuels supply, but rather to the arrangements to ensure logistics and bulk supply.
"We look forward to the implementation of the exemption as it will enable the petroleum and refinery industry to ensure consistent delivery of much-needed liquid fuels to the South African industries," concludes Tshifularo.
The South African Petroleum Industry Association (SAPIA) represents the collective interests of the South African petroleum industry. Its members are BP Southern Africa (Pty) Limited, Chevron South Africa (Pty) Limited, Engen Petroleum Limited, PetroSA, Sasol Limited, Shell SA (Pty) Limited and Total South Africa (Pty) Limited.
Notes to Editor
SAPIA's objectives are to:
- understand the needs of its stakeholders;- provide expert information and assistance to government, the petroleum industry and all South African citizens;- contribute to policy formulation;- promote transformation, environmental leadership and a fair regulatory framework for all;- facilitate security of supply; and- enhance the reputation of the industry by communicating its contribution to economic and social progress.