Consumer Protection Guidelines and Procedures for Downstream Oil and Gas Business Activities

In an effort to ensure that consumers are getting what they pay for, the Minister for Energy and Mineral Resources has issued Regulation No. 19 of 2008. The Regulation provides for a broader focus on quality assurance as this relates to not only oil and gas products but also to the service provided.

The oil and gas products covered under the provisions of the Regulation include, among others, petrol products, natural and petroleum gas, other fuels, and products manufactured from oil and gas.

The business entities covered by the provisions include all businesses that hold a business license for any activity in the downstream oil and gas sector. The obligation contained in the Regulation is that these businesses must maintain quality assurance standards that take into account the rights of consumers. The rights of consumers include, among others:

-                 guarantees of supply and distribution;

-                 products that are in accordance with any legislated specifications;

-                 safety, security, and fitness for purpose;

-                 reasonable pricing; and

-                 service procedures and mechanisms that are easy and simple.

To ensure that these standards are being met, the community must have access to a complaints procedure. Generally, this will include a PO Box, a telephone or mobile phone contact number, a facsimile, SMS, or email account, where the dissatisfied party can lodge their complaint.

The sanctions for breach of the provisions of the Regulation are administrative in nature and allow for written warnings, suspension of activities, and ultimately the cancellation of any business licenses held.

The Regulation has been in force since 13 June 2008. However, businesses have six months to come into compliance with the provisions in this Regulation.