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Bill, 2006 (H.B. 5A, 2006)
As amended by the House of Assembly
the Petroleum Act (Act 11, 2006)
contains H.B. 5A, 2006, which is the Bill as passed by the House
of Assembly, i.e., it incorporates the amendments made by the House
to the original Bill H.B. 5, 2006.
affected by the amendments are: 6, 10, 11, 12 (clause substituted),
17, 35 (new subclause (2) inserted plus other amendments), 40, 43,
48, 54 (clause substituted), 55 and 57
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the original Bill (HB 5, 2006),
Gazetted 23 June, 2006
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:
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 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.
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.
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 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.
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.
selling or production of petroleum products in Zimbabwe shall only
be done after obtaining a licence issued by the Authority.
34 will restrict a licensee not to assign or cede his or her licence.
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.
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.
Authority will be required to keep a register of licences in terms
of clause 42.
VII sets out provisions relating to the Fuel Price Stabilisation
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 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 makes
provision for the appointment of inspectors. This Part also empowers
the Minister to make regulations.
deals with offences. The offences set out in the Part relate to
failure or refusal to furnish returns.
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 sets out the powers of the Authority.
Short title and date of commencement
and Functions of Petroleum Regulatory Authority
Establishment of Petroleum Regulatory Authority.
and powers of Authority.
Regulatory Authority Board
Establishment of Petroleum Regulatory Authority Board.
of office and conditions of service of members.
for appointment as member.
of office by member.
or suspension of members.
of vacancies on Board.
and vice-chairperson of Board.
and procedure of Board.
and expenses of members of Board and members of committees.
of interest of members of Board and members of committees.
of decisions and acts of Board.
of proceedings of Board and committees.
Funds of Authority.
of moneys not immediately required by Authority.
year of Authority.
of Authority's accounts.
Miscellaneous Provisions Relating to Authority
Minister may give policy directions.
Executive Officer and other employees of Authority.
from liability for Authority.
duties of licensees.
on transfer, etc. of licence or petroleum undertaking.
and conditions of licence.
Fuel Price Stabilisation Fund
Interpretation in Part VII.
of Fuel Price Stabilisation Fund.
price stabilisation levy.
year of Fund.
of accounts and audit of Fund.
Consumer Protection and Licensee Performance Standards
Consumer protection standards.
Maintenance of Strategic Reserves and Price Control
False statements and declarations and other offences.
of confidential information and use of information acquired by inspectors,
etc., for personal gain.
and Transitional Provisions
and transitional provisions.
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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