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Following an investigation, the Namibian Competition Commission has denied the application by the National Petroleum Corporation of Namibia (Namcor) to control 50% of Namibia’s petroleum imports.
The state-owned enterprise also applied to have wholesalers purchase 50% of their fuel requirements from them, both for a period of 10 years.
However, following consultations with relevant stakeholders, and consideration of international best practices in the petroleum and importation sectors and the applicable competition law principles, the Commission denied the application.
The Commission is of the view that granting the application would likely reduce the ability of small and medium enterprises to enter the market and that there is no credible threat to security of supply that would warrant them to approve Namcor’s application.
The Commission also added that granting 50% control to Namcor does not guarantee the promotion of exports and similarly would not be enabling small undertakings owned or controlled by historically disadvantaged persons, to become competitive.
In response to the Commission’s decision, Utaara Hoveka Public Relations & Communications Specialist at Namcor said the company accepted the Commission’s ruling on their application.
“As a result of this development the 50% mandate is no longer part of our strategic priorities. We are looking at importing our own fuel products at competitive prices,” Hoveka added.
Source of original article: Namibia Economist (economist.com.na).
The content of this article does not necessarily reflect the views or opinion of Global Diaspora News (www.GlobalDiasporaNews.com).
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