Namibia’s Energy Minister has lifted a ban on Nasan Energies securing fuel from commodities trader Vitol imposed by competition authorities as a condition of approving a deal between the companies, a government gazette showed on Monday.
Namibia’s Competition Commission barred Nasan Energies from securing fuel from Vitol for five years in March as a condition of approving its acquisition of 52 Engen and Shell-branded fuel stations from Vitol unit Vivo Energy.
However, after Energy Minister Modestus Amutse in May granted Vitol a three-month exclusive fuel supply deal to counteract fuel price volatility linked to the Iran war, he decided to lift the bar following a review.
The decision is likely to deepen a political row between government and the official opposition, Independent Patriots for Change (IPC) , which had previously called for Amutse to recuse himself from the review process.
Senior IPC lawmaker Rodney Cloete told Reuters on Monday his party would ask Amutse in parliament this week under what process he had arrived at his decision, “and have not ruled out the High Court to have the determination set aside”.
In his review ruling dated July 3, Amutse said he was required in exercising the review powers “to balance competition policy against wider public-interest considerations”, citing continuity of supply, consumer protection and market stability.
On Monday the commission’s spokesperson said they would monitor for signs of market structure changes, and the emergence of any monopolistic behaviour or potential job losses.
Vitol previously said wherever the company operated it complied with applicable laws and that it was Namibia’s prerogative to determine the structure of its energy system.
–Reuters–
