Compliance Forum to address illegal fuel trade hailed
THE RETAIL fuel sector has welcomed the establishment of the Petroleum Products Act (PPA) Compliance Forum, hailing it as a step in the right direction to counter the rampant non-compliance in the industry.
Fuel Retailers Association of Southern Africa (FRA) chief executive Reggie Sibiya said last week it was their view that the move to constitute the forum was the first step in the right direction in an attempt to deal with non-compliance and the transgression of the law.
“The inclusion of the law enforcement agencies, such as the SAPS and National Prosecuting Authority, together with the SA Revenue Service, is also to be welcomed as a step in the right direction. The FRA proposes special and dedicated police and prosecutors with special training in the implementation of legislation pertaining to the industry. The effective utilisation of penalties prescribed by the act will also be a serious deterrent and reduce non-compliance,” said Sibiya.
The FRA said it would give the forum its unqualified support as long as it was not turned into another talk shop without effective implementation of the resolutions and application of the law in dealing with issues of non-compliance and transgression within the industry.
The Department of Mineral Resources and Energy (DMRE) announced last week that it had established the PPA Compliance Forum, comprising petroleum industry stakeholders and law enforcement agencies.
The department called on the public to report to the DMRE’s regional inspectors any petroleum operator suspected of non-compliance with the PPA or of engaging in illegal and illicit fuel trading, which included manufacturing, wholesaling or retailing petroleum products without a licence from the Controller of Petroleum Products, fuel wholesalers operating as retailers, the development of sites without a licence, and the sale of inferior-quality petrol and diesel contrary to prescribed specifications and standards.
Other illegal activities were selling 93 unleaded petrol (ULP) at the price of ULP 95, selling petroleum products contrary to the price determined by the Minister of Mineral Resources and Energy, the non-disclosure of fuel storage facilities, providing huge discounts in the price of diesel, mixing diesel with paraffin, and broad-based black economic empowerment fronting.
The DMRE said anyone who contravened a provision of the PPA would be liable, on conviction, to a fine not exceeding R1 million or imprisonment of up to 10 years, or both.