Namibia Lifts Ban on Nasan Fuel Deal With Vitol

Namibia’s Minister of Mines and Energy, Modestus Amutse, has reversed a competition ruling that prevented Nasan Energies from buying fuel from global commodities trader Vitol, saying the decision was necessary to safeguard fuel supplies and maintain stability in the energy market.

The restriction was introduced in March by the Namibia Competition Commission as part of its approval of Nasan Energies’ purchase of 52 Engen and Shell-branded service stations from Vivo Energy, a Vitol subsidiary. Under those conditions, Nasan was barred from sourcing fuel from Vitol for five years over concerns about market concentration.

In a decision dated July 3, Amutse said broader public interest considerations took precedence over the competition concerns raised earlier. He said ensuring a reliable fuel supply, protecting consumers and preserving stability in the energy sector justified lifting the restriction.

The latest decision follows a temporary measure introduced in May, when the minister approved an exclusive three-month fuel supply arrangement with Vitol to help shield Namibia from fuel price volatility linked to the conflict involving Iran and disruptions in global energy markets.

The move has drawn criticism from the opposition Independent Patriots for Change (IPC). The party said it is considering legal action and plans to question the minister in Parliament over the process that led to the review. Senior IPC lawmaker Rodney Cloete said the option of challenging the decision before the High Court remains under consideration.

The Namibia Competition Commission said it will continue monitoring the fuel sector for signs of anti-competitive conduct, excessive market concentration or job losses. Vitol said it complies with the laws of every country where it operates and respects Namibia’s authority to determine the structure of its energy industry.

SOURCE: Reuters