Energy Ministry concedes to FAFA demands

• BY VITALIO ANGULA

THE Ministry of Mines and Energy recently issued a press release announcing the suspension of downstream petroleum licenses.

In a media release dated 25 August 2022 the ministry stated that it had noted with great concern that both the fuel wholesale and retail markets are highly saturated with licenses.

“This situation has created problems that ultimately lead to high fuel prices in the country”, the statement reads.

To that effect the ministry announced that it will not accept applications for new fuel retail sites and wholesale licenses until further notice.

Last month the Fuel Franchise Association of Namibia (FAFA) threatened a nation-wide shutdown
if government did not concede to several of their demands including placing a moratorium on new fuel retail and wholesale licenses.

Hennie Kruger, Chairperson of FAFA raised concern of new licenses being issued in a declining market.

At the time the FAFA Chairperson suggested government to come to the table and solve their problems before they are driven to extremes.

Kruger also took issue with operation of government in the downstream fuel industry through NAMCOR.

“Government is a regulator in the fuel business, they decide where, when and with who you can do business, they (NAMCOR) open a site right across another retail site, the question is how was that assessed and is that not a conflict of interest”.

In emailed responses to Confidente Uutara Hoveka, Communications Specialist at NAMCOR said the parastatal will be negatively impacted
by the suspension of issuing of downstream petrol licenses since they have fuel retail sites being constructed across the country.

“Like any other fuel retail player NAMCOR is bound by applicable industry laws, regulations and lawful directives including the latest one.

It will certainly impact

Hennie Kruger on the execution of our retail strategy especially with respect to the new sites. We can only complete sites currently under construction but cannot look at any new ones until the moratorium is lifted”, Hoveka informed Confidente.

“We currently have nine sites under construction in different parts of the country”, Hoveka further informed Confidente.

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