SAPIA Petroleum Policy and Economics - INDIVIDUAL ASSIGNMENT
Title: The Structure and Regulatory Framework of the downstream industry in South Africa
1. INTRODUCTION
This paper will explore the regulatory environment that the downstream industry currently operates in. This will touch on the operation of each structure as well as relevant roles and responsibilities. The different policies and acts within each authoritative structure which supports their varied objectives will be dissected and further elaborated on. Finally the effects that current regulation has on the industry will be discussed as well as how possible alternatives could more effectively assist the industry in relation to the country’s demand for liquid fuels. Overall it will look at the environment that the industry operates in as well as the legal effects, laws, policies and restrictions that govern it.
2. CURRENT STRUCTURE & REGULATORY FRAMEWORK
The industry is regulated by the Department of Minerals and Energy and monitored by the Parliamentary Portfolio Committee. The industry has been regulated since the 1930’s to provide a balance between the needs of the various interest groups. Certain agreements, mostly unsigned, also exist and are in force. Policy often creates a framework and its intent is to be proactive (anticipating problems ahead of time) and are pliable (can change from time to time). The white paper is the final document that we call a policy.
2.1 DME
The government currently regulates the Refining, Wholesaling, Storage and retailing of the industry. Price control: The Minister of Minerals and Energy has power to prescribe the price, or a maximum/minimum price at ...