Petroleum and Liquid Fuels B-BBEE Sector Code

In September 2017, the DTI issued a Proclamation to publicise the intention of the Department of Energy and the Petroleum and Liquid Fuels Industry to align the B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter with the B-BBEE Act, the B-BBEE Codes of Good Practice and the B-BBEE Policy Framework to ultimately serve as a Sector Specific Code of Good Practice.

The goal was to establish a B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter Council and seek consultation with Stakeholders. Significant work was done, however the final charter has not been published via a Gazette as yet but the basic detail is available for use by the public.

The Petroleum and Liquid Fuels B-BBEE Codes and scorecards apply to the following sub-sectors:

1.Liquid Fuels pipelines, single buy mooring (SBMs), depots and storage tanks.
2.Oil refining and synthetic fuel manufacturing plants, including lubricants.
3.Oil and Gas trading including imports and exports.
4.Wholesale and Retail Assets/Infrastructure.

All major stakeholders were invited to be part of a council forum at which consultation would occur. One of the major stakeholders is the Fuel Retailers Association (FRA). The FRA published a draft working document in March 2018 outlining a “DRAFT RETAIL OPERATER AND SITE OPERATER SECTOR SCORECARD” – http://www.fuelretailers.co.za/uploads/1802_FRA-ROADSHOWS_final.pdf

Additionally, the Department of Energy presented a paper titled “PETROLEUM AND LIQUID FUELS TRANSFORMATION” on 23 November 2017. http://www.energy.gov.za/files/PPACampaigns/gauteng/Nov2017/Petroleum-and-Liquid-Fuels-Transformation-DoE.pdf

The B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter will, upon promulgation in terms of Section 9 of the B -BBEE Act, serve as the Petroleum and Liquid Fuels Sector Codes of Good Practice.

From the Fuel Retailers working document a draft summary of priorities were compiled for B-BBEE compliance

Additionally, the working document proposes that new sub-elements will be added to the B-BBEE Codes of Good Practice. Some additions include:

• Management Control: Addition of compliance criteria linked to Semi-skilled and unskilled positions.
• Management Control: Use of Black Youth Employees for compliance purposes.
• Skills Development: Participation of Black Staff in Advancement Programmes as a percentage of all Junior Management and Semi-Skilled and Unskilled Employees.
• Enterprise and Supplier Development: Addition of several compliance criteria linked to Local Economic Development.
• Ownership: Black Employee Ownership Programmes.
• Use of the Modified Flow-Through principle will not be allowed.

As the Charter has not yet been finalised the above information is subject to change.

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