Investigation launched into illicit sale of fuel supply licenses

Niël Terblanché

The Ministry of Mines and Energy has initiated an investigation into the illicit sale of fuel supply licenses, as concerns mount over the unauthorised marketing of fuel licenses and fuel products at unregulated prices on social media platforms.

Brian Eiseb, the Acting Executive Director of the Ministry of Mines and Energy, expressed deep concern about the increasing number of advertisements offering wholesale fuel licenses, retail fuel licenses, and fuel at non-gazetted prices.

“These advertisements often originate from individuals or institutions lacking the necessary licensing authority,” he said.

Eiseb cautioned the public that engaging in the trade of fuel supply licenses is illegal, emphasizing that the Ministry of Mines and Energy is responsible for regulating the distribution of petroleum products, specifically petrol and diesel, within the petroleum downstream sector.

This regulatory authority is governed by the Petroleum Products and Energy Act of 1990, the Petroleum Products and Energy Amendment Act of 2000, and the Petroleum Products Regulations of 2000.

Eiseb stressed that, in accordance with Regulation 29(1)(2), fuel wholesale licenses, fuel retail licenses, and fuel installation certificates are non-transferable and therefore cannot be offered for sale.

He also warned against the common practice of selling smuggled fuel in the far northern regions of the country.

Regarding the pricing of petrol and diesel, Eiseb explained that it is subject to regulatory control, as outlined in the Petroleum Products and Energy Act of 1990.

“These prices are regularly updated and officially published in monthly gazette releases,” he said.

He reiterated that marketing or selling fuel licenses or certificates is illegal, citing the Petroleum Products Regulations 2000, Regulation 29 (1) and (2), which clearly state that “a license or certificate is not transferable except by way of amendment under Regulation 30.”

“Furthermore, selling petrol and diesel from an unlicensed outlet or without the requisite license is strictly prohibited. We strongly urge those engaging in such activities to immediately cease their unlawful practices,” he warned.

Authorities are expected to take stringent action against those involved in the illicit sale of petroleum licenses, aiming to maintain the integrity and legality of the fuel supply industry in Namibia.

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