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210224Presentation_Petroleum_Licensing_Process

Petroleum_Licensing_Process in South Africa

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210224Presentation_Petroleum_Licensing_Process

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  1. PRESENTATION OF PETROLEUM LICENSING PROCESS • Petroleum Licensing Process • 24 February 2021 • Mr Tseliso Maqubela • Head – Minerals & Petroleum Regulation Branch

  2. PRESENTATION LAYOUT • Empowering Act • Structure of Chief Directorate for Petroleum Licensing and Fuel Supply • Process of Analyzing and Evaluation of Applications • Requirements to Obtain a Licence Categories of Licences • Regulations for Conditions of Each Licence Category • Statistical Indicators • Applications Processing Status • Initiatives to Eliminate Backlog

  3. EMPOWERING ACT Petroleum Licensing Process is empowered by : Petroleum Products Amendment Act No. 58 of 2003

  4. PROCESS OF ANALYZING AND EVALUATION OF APPLICATIONS Applicant lodge an application Walk in By Post Application accepted? NO Return application YES Appeal Evaluation stage 90 days Decision License issued Accept Decision License Decline

  5. PROCESS OF ANALYSING AND EVALUATION OF APPLICATION Application is received and captured on PPALS System A Receipt and reference number is issued to Applicant and notice to advertise An applicant for Manufacturing and Wholesaling must advertise in two circulating National Newspapers in English and any other language An Applicant is provided for site and retail must advertise the applications in two circulating Local newspapers in English and any other language in the area where the proposed site and retail would be trading. Publications must be lodged with Regional office where application was captured

  6. DOCUMENTS TO BE SUBMITTED IN SUPPORT OF PETROLEUM LICENCE APPLICATIONS • Completed Application form • Signed Regulated declarations applicable to a licence category • Motivation for the business proposition (Business Plan) • A certified copy of the applicant’s identity document if the person is a natural person and , in the case of a non-South African citizen, a permanent residence permit or employment permit and proof of residence in South Africa, or proof of domicile in South Africa as the case may be • A certified copy of business entity registration documents, if the applicant is a corporate entity or a trust

  7. DOCUMENTS TO BE SUBMITTED IN SUPPORT OF PETROLEUM LICENCE APPLICATIONS • Net present value calculations; and all data assumptions used in the calculation of net present value • In the case of an application made by a non-natural person, a declaration on the extent of ownership of the business by historically disadvantaged South Africans as defined in the charter. • In the case of an applicant made by a natural person claiming to be a historically disadvantaged South African, a declaration by that person to that effect.

  8. DOCUMENTS TO BE SUBMITTED IN SUPPORT OF PETROLEUM LICENCE APPLICATIONS • A declaration by the applicant stating that the applicant is in compliance with the Act, the Regulations and all other national, provincial and local government laws applicable for the operation of the activity concerned. • Certified copy of Title Deed • Land use Zoning certificate issued by a competent authority or person • Financial Security for Rehabilitation • Permission by National Roads Authority if the site is intended to allow access by vehicles to a national road.

  9. CONDITIONS WITH REGARD TO MANUFACTURING LICENCE Regulation 11 of Petroleum Products Amendment Act No 58,2003 • The licensed manufacturing activity must remain a going concern. • A licensed manufacturer may only manufacture petroleum products with maximum design capacity stated on its licence. • A licensed manufacturer must- • maintain minimum working stock levels in compliance with applicable regulations; • if so instructed in writing by the Controller, submit to the Controller, within the period specified in the instruction, information-

  10. CONDITIONS CONTINUED • necessary for the regulation of petroleum products; • on petroleum products sold and crude oil stored during the period specified in the instruction; • on stock levels of petroleum products, in terms applicable regulatory requirements; and • in respect of progress in complying with the objectives of the charter, • at all times carry out legitimate instructions from the Controller; • comply with Charter; • submit the information set out in regulation 18;

  11. CONDITIONS CONTINUED • comply with provisions of the fuel specifications determined in regulations made under section 12C (1)(e) of the Act • if so directed by the Controller, desist from supplying petroleum products to a licensed wholesaler or retailer that is not in compliance with the Act or the conditions of its wholesale or retail licence; • In the event of a transfer of a manufacturing licence, these Regulations shall apply, subject to the necessary changes.

  12. CONDITIONS WITH REGARD TO WHOLESALE LICENCE • (1) A licensed wholesale activity must remain a going concern, (2) A licenced wholesale must- • purchase petroleum products only in bulk from other licensed wholesalers or licensed manufacturers, except in the case of importation of petroleum products; • in the case of petroleum products sold in the Republic of South Africa, except in the case of liquified petroleum gas and paraffin, only sell in bulk to- • licensed manufacturer; • licensed wholesaler;

  13. CONDITIONS CONTINUED • licensed retailer; or • end consumer for own consumption; • not, except in the case of liquified petroleum gas and paraffin make use of a business practice, method of trading, agreement, arrangement, scheme or understanding which would result in a licensed wholesaler holding a retail licence except for training purpose; (

  14. CONDITIONS CONTINUED (3) A licensed wholesale must:- • obtain an undertaking signed by an end consumer that the petroleum products purchased from that wholesaler are for own consumption; • Comply with the Charter; • Submit the information set out in regulation 17; • If so instructed, submit to the Controller on a date and in the manner specified in the instruction- • information necessary for the regulation of prices of petroleum products;

  15. CONDITIONS CONTINUED • Data on petroleum products, purchased or sold and petroleum products stock levels during the period specified in the instruction; • Information relating to progress in complying with the objectives of the Charter, and • any other information which might be required for regulatory purposes; • Keep minimum working stock levels in compliance with applicable regulations; • Pay the annual licence fee determined in Annexure B before the anniversary of the licence;

  16. CONDITIONS CONTINUED • allow any person authorised by the Controller in accordance with the Act access to the premises where wholesaling is conducted for the purpose of inspections or conducting an investigation; • at all times comply- • with the Act and these Regulations; and • carry out legitimate instructions from the Controller; and • Inform the Controller in writing of any change of address or telephone number within 30 days of the relevant change taking effect.

  17. CONDITION WITH REGARD TO SITE AND RETAIL LICENCES • A site licence, or a certified copy thereof, must be prominently displayed at the place of business where any person entering the site may read it; • A licensee must inform the Controller, in writing , of any change of address or telephone number within 30 days of the relevant change taking effect; • A corresponding retail licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it; • A licensee must at all times:-

  18. CONDITIONS CONTINUED • comply with the Act and these Regulations: and • carry out legitimate instructions from the Controller. Conditions with regard to retail License • (1) The licensed retailing activity must remain a going concern. (2) A licensed retailer must only:- • retail from the site specified on the retail licence; and • purchase petroleum products from a licensed wholesaler or a licensed manufacturer

  19. CONDITIONS CONTINUED (3) A Licensed retailer must- • inform the Controller in writing of any change of address or telephone number within 30 days of the relevant change taking effect; • pay the annual licence fee determined in Annexure B before the anniversary of the licence issued; • comply with the Charter; • submit the information set out in regulation 28; • allow any person authorised by the Controller in accordance with the Act access to the relevant site for the purpose of inspections or conducting an investigation;

  20. CONDITIONS CONTINUED • at all times- • comply with the Act and these Regulations; and • carry out legitimate instructions from the Controller; • If so instructed, submit to the Controller on a date and in the manner specified in the instruction- • information necessary for the regulation of prices of petroleum products; • data on petroleum products purchased or sold during a specified period and stock levels of the petroleum products

  21. CONDITIONS CONTINUED • information relating to progress in complying with the objectives of the Charter; and • any other information that might be required for regulatory purposes. (4) A retail licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it. (5) A corresponding site licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it.

  22. CONDITIONS CONTINUED (6) A licenced retailer must not allow self-service by consumers of petroleum products on the premises of the licensed retailer. (7) A retail licence is not transferable.

  23. STATISTICAL INDICATORS FROM 2012 TO 2020 • The Branch issued the following licences:

  24. STATISTICAL INDICATORS FROM 2012 TO 2020 Transformation Indicators:

  25. STATISTICAL INDICATORS FROM 2012 TO 2020 Inactive Licences

  26. APPLICATION PROGRESS STATUS Applications in Progress to Date

  27. INITIATIVES TO ELIMINATE BACKLOG • The Covid-19 lockdown periods immensely affected applications processing time. • Backlog is applications that are in the Application Progress status. • Backlogs are mainly applications that have outstanding information to be finalised. • The Chief Directorate receives a lot of wholesale applications which clogs the system • The Chief Directorate is introducing a new paperless application processing system in the new financial year commencing 2021/22. • The Analysis Directorate is working weekends to eliminate the backlog.

  28. Thank You

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