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Official Gazette

Wednesday, February 26, 2020

Draft decree facilitates foreign petrol traders

Updated: 14:42’ - 03/01/2020
Traders engaged in petrol and oil production and processing might transfer their shares to foreign investors but the foreign holding rate must not exceed 34 percent and the traders must obtain approval from the Ministry of Industry and Trade (MIT).

Such is proposed by the MIT in a draft decree revising Decree 83 of 2014 which is expected to create a level playing field for foreign and domestic traders and help develop the petrol and oil market in a fair manner.

Also provided in the draft, mini filling stations might be set up on a pilot basis in remote, deep-lying and difficulty-hit areas where few businesses are intended in dealing in petrol and oil stations due to economic inefficiency, and in highly populated areas in big cities that do not have enough space for normal-sized filling stations as required.

Mini filling stations would be imported but must obtain a safety certificate from the Ministry of Science and Technology’s Directorate for Standards, Metrology and Quality, according to drafters.

The draft retains the price stabilization fund, providing requirements on business operation reporting and calculation of interest rates and financial resources when wholesale petrol and oil traders use the price stabilization fund while the fund at enterprises suffers a deficit.- (VLLF)

 

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