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Petroleum Bill, 2006 (H.B. 5, 2006)
June 23, 2006
Gazetted Friday 23rd June, 2006

Important note: This Bill has been replaced by HB 5A, 2006

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Petroleum Bill, 2006

MEMORANDUM

The purpose of this Bill is to establish a Petroleum Regulatory Authority which will regulate and license petroleum product providers. In more detail the Bill provides as follows:

Part I
The Bill's short title is set out in clause 1, and the clause empowers the President to bring the Bill, once an Act, into operation. Clause 2 defines the terms that are used throughout the Bill.

Part II
This Part will establish the Petroleum Regulatory Authority as a body corporate in clause 3 and will set out its functions and powers in clause 4 and the Schedule. The functions of the Authority will include ensuring the provision of sufficient petroleum product for domestic use, granting licences to persons in respect of retailing or production, procurement of petroleum products in Zimbabwe.

Part III
The activities of the Authority will be directed by a Board consisting of five members, all of whom will be appointed by the Minister of Energy and Power Development, after consultation with the President.

The qualifications of members of the Authority's Board, their terms of service and conditions of office, and the filling of vacancies on the Board, are dealt with in clauses 7 to 11, 15 and 16. Clauses 7 and 12 provide that a member's terms and conditions of service and remuneration may not, without his or her consent, be changed to his or her detriment during his or her tenure of office. Clause 13 deals with the procedure to be followed by the Board at its meetings. The Board will be empowered to appoint committees and delegate its functions to them (clause 14). The Board will be required to keep proper minutes of its proceedings (clause 18).

Part IV
This Part will provide for the financial affairs of the Authority, and sets out the sources of its funds in clause 19. In terms of clause 20, any surplus of income over expenditure at the end of the Authority's financial year will be invested in such manner as the Authority considers appropriate and the financial year of the Authority is provided for in clause 21. The Authority will be required to keep proper accounts by clause 22. The auditing of the accounts of the Authority is provided for in clause 23.

Part V
The Minister will be empowered to issue policy directions to the Board in terms of clause 25. In terms of clause 26, the Board will be required to submit a report to the Minister every year on its activities. The Authority's day-to-day administration will be in the control of a Chief Executive Officer appointed under clause 27. The Authority, its employees, the Board and its members and members of committees will be exempted from liability by clause 28 in the bona fide exercise of their functions.

Part VI
The procurement, selling or production of petroleum products in Zimbabwe shall only be done after obtaining a licence issued by the Authority.

Clause 34 will restrict a licensee not to assign or cede his or her licence.

A person who wishes to obtain a licence will be required by clause 36 to submit an application to the Authority and the clause will empower the Authority to grant or refuse to grant a licence.

In terms of clause 40 the Authority will be empowered to suspend or cancel licences it has issued for the reasons stated in the clause. The Authority will however be required to first inform the licensee of its intention and invite representations from him or her and will be obliged to take due account of any representations made by the licensee. In addition, instead of suspending or cancelling licences, the Authority may choose to issue orders to licensees requiring compliance with the conditions of their licences. Such orders may be enforced in civil proceedings brought by the Authority or by any person affected by any non-compliance with such order.

The Authority will be required to keep a register of licences in terms of clause 42.

Part VII
Part VII sets out provisions relating to the Fuel Price Stabilisation Fund.

Part VIII
This Part provides for consumer protection standards where a licensee is required to develop and submit to the Authority for its review consumer protection standards.

Part IX
This Part deals with monitoring the provision of petroleum products so that there is no monopoly by any oil company in the provision of that product. Under this Part National Oil Company of Zimbabwe (NOCZIM) is required to maintain strategic reserves of petroleum product. The Minister shall prescribe oil product prices.

Part X
Part X makes provision for the appointment of inspectors. This Part also empowers the Minister to make regulations.

Part XI
Part XI deals with offences. The offences set out in the Part relate to failure or refusal to furnish returns.

Part XII
Clause 60 provides for savings and transitional provisions. Every by-law in force under the Control of Goods Act [Chapter 14:05] relating to petroleum industry shall be saved.

Schedule

The Schedule sets out the powers of the Authority.

Petroleum Bill, 2006

ARRANGEMENT OF SECTIONS

PART I
Preliminary

Section

1. Short title and date of commencement
2. Interpretation.

PART II
Establishment and Functions of Petroleum Regulatory Authority

3. Establishment of Petroleum Regulatory Authority.
4. Functions and powers of Authority.

PART III
Petroleum Regulatory Authority Board

5. Establishment of Petroleum Regulatory Authority Board.
6. Constitution of Board.
7. Terms of office and conditions of service of members.
8. Disqualifications for appointment as member.
9. Vacation of office by member.
10. Dismissal or suspension of members.
11. Filling of vacancies on Board.
12. Chairperson and vice-chairperson of Board.
13. Meetings and procedure of Board.
14. Committees of Board.
15. Remuneration and expenses of members of Board and members of committees.
16. Disclosure of interest of members of Board and members of committees.
17. Validity of decisions and acts of Board.
18. Minutes of proceedings of Board and committees.

PART IV
Financial Provisions

19. Funds of Authority.
20. Investment of moneys not immediately required by Authority.
21. Financial year of Authority.
22. Accounts of Authority.
`23. Audit of Authority's accounts.
24. Powers of auditors.

PART V
Miscellaneous Provisions Relating to Authority

25. Minister may give policy directions.
26. Reports of Authority.
27. Chief Executive Officer and other employees of Authority.
28. Exemption from liability for Authority.

PART IV
Licences

29. Licensing requirement.
30. Procurement licence.
31. Retailing licence.
32. Production licence.
33. General duties of licensees.
34. Restriction on transfer, etc. of licence or petroleum undertaking.
35. Licence application.
36. Terms and conditions of licence.
37. Renewal of licence.
38. Amendment of licence.
39. Enforcement of licence.
40. Cancellation of licence.
41. Form of licence.
42. Register of licences.
43. Returns by licensees.

PART VII
Fuel Price Stabilisation Fund

44. Interpretation in Part VII.
45. Establishment of Fuel Price Stabilisation Fund.
46. Objects of Fund.
47. Composition of Fund.
48. Fuel price stabilisation levy.
49. Financial year of Fund.
50. Books of accounts and audit of Fund.

PART VIII
Consumer Protection and Licensee Performance Standards

51. Consumer protection standards.
52. Competition.

PART IX
Maintenance of Strategic Reserves and Price Control

53. Strategic reserves.
54. Petroleum product prices.

PART X
General

55. Inspections.
56. Appeals.
57. Regulations.

PART XI
Offences

58. False statements and declarations and other offences.
59. Disclosure of confidential information and use of information acquired by inspectors, etc., for personal gain.

PART XII
Savings and Transitional Provisions
60. Savings and transitional provisions.

BILL

To provide for the establishment of the Petroleum Regulatory Authority and its functions and management; to provide for the licensing and regulation of the petroleum industry; and to provide for matters incidental to or connected with the foregoing.

ENACTED by the President and the Parliament of Zimbabwe.

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