PPAB as amended by the NCOP October 2003
Licensing
2B.
(1) The Controller of Petroleum Products must issue licences in accordance with the provisions of this Act.(2) In considering the issuing of any licences in terms of this Act, the Controller of Petroleum Products shall give effect to the provisions of section 2C and the following objectives:
(a) Promoting an efficient manufacturing. wholesaling and retailing petroleum industry;
(b)) facilitatin2 an environment conducive to efficient and commercially justifiable investment;
(c) the creation of employment opportunities and the development of small businesses in the petroleum sector;
(c) ensuring countrywide availability of petroleum products at competitive prices;
and
(c) promoting access to affordable petroleum products by, low-income consumers for household use.
(3) Any licence issued by the Controller of Petroleum Products remains valid for as long as
(a) the licensee complies with the conditions of the licence:
(b)) the licensed activity remains a going concern, excluding a site; and
(c) in the case of a site. there is a corresponding valid retail licence.
(4) The Controller of Petroleum Products must issue only one retail licence per site.
(5) To ensure the continued operation of a licensed activity and the prevention of hardship the Controller of Petroleum Products may, upon
application. issue a temporary licence which shall be valid for a period not longer than six months.
(6) It shall be a condition of a manufacturing licence or a wholesale licence as the case may be that the licensee must purchase and or sell, or purchase and sell. petroleum products
(a) manufactured from coal, natural gas or vegetable matter;
(b) that meet prescribed specifications and standards where applicable;
(c) when such petroleum products are available in South Africa; and
(d) at mutually acceptable prices. Subject to section 2 of this Act.
before purchasing and or selling. or purchasing and selling petroleum products manufactured from other raw materials.
System for allocation of licences
2E. (1) The Minister must prescribe a system for the allocation of site and their corresponding retail licences and the supply of prescribed petroleum products to such licensees, by which the Controller of Petroleum Products shall be bound: Provided that the Controller of Petroleum Products shall only be bound by the provisions of such a system for the period set out in that regulation or any amendment thereto or any substitution thereof which period may not exceed 10 years from the date 0f commencement of that regulation.
(2) The Minister shall prior to promulgating a system contemplated in subsection (1) invite public comment thereon by publishing it in the Gazette and duly considering such comments.
(3) A system contemplated in subsection (1)
(a) must intend to transform the retail sector into one that has the optimum number of efficient sites;
(b) must intend to achieve an equilibrium amongst all participants in the petroleum products industry within the constraints of this Act;
(c) must be based on the objectives referred to in section 2B(2) and 2C:
(d) must promote efficient investment in the retail sector and the productive use of retail facilities
(i) by limiting the total number of site and corresponding retail licences in any period;
(ii) by linking the total number of site and corresponding retail licences in any period, to the total mass or volume of prescribed petroleum products sold by licensed retailers; and
(iii) by other appropriate means:
(e) must allow licensed wholesalers to trade with each other any contractual rights and obligations they may have to supply licensed retailers with prescribed petroleum products;
(f) may specify that petroleum products which-
(i) are manufactured from coal, natural gas or vegetable matter, when
available in South Africa;
(ii) meet prescribed specifications and standards, where applicable;
(iii) (d) are at mutually acceptable prices. Subject to section 2 of this Act.
must be supplied to a licensed retailer before the supply of prescribed petroleum products manufactured from other raw materials may be supplied:
(g) may link the issuing of a new site licence and the corresponding retail licence to the termination or transfer of ownership of one or more existing site licences and the corresponding retail licences;
(h)) may link the issuing of a new retail licence to the transfer from a licensed wholesaler of contractual rights enjoyed by that wholesaler in respect of one or more licensed retailers to another licensed wholesaler.
(4) The Minister shall from time to time review the efficacy of the system contemplated in subsection (1) against the objectives of this Act and may amend the system in an appropriate manner and the provisions of subsection (2) shall, mutatis mutandis apply.
Regulations
12C. (1) The Minister may without derogating from his or her general regulatory powers. make regulations
(a) regarding manufacturing. wholesale, site or retail licences, including -
(i) the form and manner in which an application for a licence or an amendment to an already issued licence shall be made;
(ii) procedures to be applied in the evaluation of an application for a licence. and the period within which it shall be considered;
(iii) the monies payable for licences; (iv) the form of a licence;
(v) conditions of licence which may be imposed by the Controller of Petroleum Products in respect of a particular licence or a category of licences, including-(aa) the rights. duties and obligations of licensees in the manufacture, handling, storage. packaging. dispensing and sale of petroleum products;
(bb) conditions relating to the advancement of historically disadvantaged South Africans:
(cc) the number of retail licences that may be held by a licensed wholesaler for retail training purposes;
(vi) the obligation of a licence holder to keep records and to furnish particular information to the Controller of Petroleum Products. and the frequency of furnishing such information;
(vii) the transfer of ownership of licences. excluding the price of the licensed properly;
(viii) the termination of a licence and the procedures relating to such termination:
(b) prohibiting a business practice which conflicts with the objectives referred to in sections 2B(2) and 2C;
(c) regarding the records and information to be kept by the Controller of Petroleum Products. and the furnishing thereof to third parties in accordance with the provisions of the Promotion of Access to
Information Act, 2000 (Act No.2 of 2000);
(d) regarding the continuity of supply of petroleum products by licensees under normal operating conditions, and in cases of potential or actual emergency. including an amendment to a licence;
(e) regarding the specifications and standards of petroleum products;
(f) regarding the prohibition of the blending or mixing of different petroleum products or the blending or mixing of petroleum products with other substances which will lead to deviation from prescribed petroleum product specifications or standards or for the purpose of avoiding the payment of any tax, duty or levy;
(g) regarding the rehabilitation of land used in connection with a licensed activity by the licensee concerned, including the lodging of financial security for rehabilitation purposes and the composition
and amount of such security; and
(h)the period within which a decision on an appeal should be given.
(2) The Minister shall, except in an emergency, prior to promulgating any regulation contemplated in subsection (1)(e)
(a) invite public comment thereon by publishing in the Gazette the full particulars of the specification or standard;
(b) allow a period of not less than two months after the date of publication oŁ such Gazelle for the submission of public comment; and
(c) duly consider such comments.