Developments from the Energy and Water Utilities Regulatory Authority (EWURA), regarding Revised Cap Prices for Petroleum Products of 3rd June 2020
Following the introduction of the greatly revised cap prices for petroleum products, the Energy and Water Utilities Regulatory Authority (EWURA) has noted an artificial shortage of petroleum products made by Oil Marketing Companies (OMC’s) towards its retail customers.
On 4th June 2020, EWURA released a statement concerning this issue and has urged every OMC to adhere to what is required of them, failure of which they would be directly contravening the following provisions of the Law:-
- Section 183(2) of the Petroleum Act requires all OMCs to sell products and offer services without undue delay and without any form of discrimination by means of quality, quantity, price, or any others.
- Non-compliance would equally constitute an offence under Rule (4)(3) of the EWURA (Petroleum Products Price Setting) Rules, 2009 GN No. 5 whereby upon liable conviction, this may subject an OMC and/or their management representatives to a fine of not less than TZS 3,000,000, or to imprisonment for a term of not less than 5 (five) years; or to both.
- Another non-compliance by OMCs, that will amount into committing an offence under Section 240 of the Petroleum Act 2015 (Act), states that any contravention or attempt at contravention to any Rules, Orders or Regulations made under this Act by an OMC; then the OMC upon conviction, shall be liable to a fine of not less than TZS 10,000,000, or to imprisonment for a term of not less than 2 (two) years; or to both.
- Finally, all OMCs are duly reminded and ordered to immediately ensure they sell petroleum products to all who may request for these, in accordance with the requirements of the Law. Wrongful parties may be subject to legal liability under Section 238 of the Petroleum Act 2015, which provides a fine of not less than TZS 500,000,000 to a body corporate who, without reasonable excuse, fails to comply with any directive issued under this Act. It is emphasised that legal action will be taken against all who contravene the orders and OMCs will be held liable accordingly, potentially exposing them to multiple offence charges.
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