Review on project agreement determination sought

A draft determination on the application by Puma Energy to provide aviation refueling service at Jacksons Airport is open to review and comments.

The Independent Consumer and Competition Commission (ICCC) is now calling for stakeholders in the aviation and oil sector as well as the public to review the draft determination and comment before December 19th.

One of the key issues raised in the determination is the Napa Napa Project Agreement between Puma Energy and the State, which the ICCC says has been one of the major areas of competition concerns.

ICCC CEO and Commissioner, Paulus Ain, says clauses in the agreement prevent the sourcing of fuel from elsewhere (imports), creating less competition to the domestic refiner, Puma Energy.

“The way the clauses relating to obligation to purchase domestically provided under the Project Agreement is seen to be limiting import competition because players are required to purchase first and foremost from the Domestic Refiner (Puma Energy),” Ain said in a media statement.

Puma Energy have informed the ICCC that it was a misconception on the operation of the agreement and its application, and that agreement is only between them and the state, and as such other players who import fuel products are not in breach of the agreement.

In a letter to the ICCC Puma Energy said “under the current legislative environment, and existing practice, there is nothing preventing any industry participant (existing or future) from importing Jet 1 (or any other fuel product for that matter) into the country”

Puma Energy says the state is in a position to enforce the obligation to acquire refined fuel from the Refiner; and not Puma Energy.

The ICCC has discussed the agreement and is asking stakeholders to review the determination.

“The issue of Project Agreement has been discussed on the recently released Draft Determination in relation to an application from Puma Energy for authorisation to enter Jacksons (Airport) to provide aviation refueling services via a lease arrangement with the National Airports Corporation,” Ain says.

Puma Energy plans to set up the refueling station on the other side of the Jacksons Airport Junction.

Picture credit: pumaenergy.com

 

 

Author: 
Cedric Patjole