The Competition Commission has again extended an exemption to SA’s petroleum industry to proceed with agreements and practices that would ordinarily constitute cartel conduct.
An exemption — written permission by the commission to engage in a prohibited practice — has been in place since 2010, and has been extended a number of times. In terms of the Competition Act, the commission may grant an exemption for certain agreements or practices if it serves to maintain or promote exports.
The scope of the exemption excludes wholesale and retail activities but allows for co-ordinated activities which, the commission said, would ordinarily constitute cartel conduct under Section 4 of the Competition Act. The activities include, among others, the importing of oil and fuel through one facility in Durban; planning refinery shutdowns; supplying fuel to airports through a common facility; and interaction of members on government policy initiatives.
According to Avhapfani Tshifularo, Sapia executive director, the justification put forward by the industry for the exemption has not changed since the exemption was first granted in 2010.