Several Members of Parliament (MPs) questioned the structure, risks and implications of the proposed fuel supply arrangements.

"Do you receive, as a minister of Mines and Energy receive Intelligence Report in this country? Are you aware of some intelligence reports that are showing individuals in this country already receiving big oil kickbacks in the country?"

"Your research is telling us that there was a merger between engine and detail. Basically that gives the international player, the wholesaler and the retailer a link, a chain there, and this creates a monopoly, sort of to say."

"What factors pushed your suppliers to reduce their prices so that you can save the N$1 billion? What factors are those to remove the premium? What is it that they are gaining in return? There is no capitalist in this world who would simply give up the chance to make a profit for Mahala."

The Namibian Competition Commission says that NASAN will not get fuel from Vitol. Now you have given Vitol an exclusive deal so that they are the only ones that should supply fuel here, and NASAN are in the business. They must get fuel to have those service stations not dry. So how do we deal with this legal nightmare?"

"I would like the minister to give us a brief risk assessment that he took in terms of what some of the contingency measures are that the government has in place, has vetoed, which perhaps breached the contract in terms of the disruptions, the geopolitical disruptions of their supply, and two issues around financial distress; what is plan B?"

"In his response, Minister Modestus Amutse clarified that there are multiple companies applying in Namibia as wholesalers and that they are all formally licensed by the ministry. 

While there are also many retailers in the market, the discussion in this context was focused specifically on bulk fuel supply through wholesalers, such as Puma, Vivo Energy, NAMCOR, and TotalEnergies. 

"With Namcor, there was a condition. The condition was they needed a guarantee because they could only acquire oil from the source with a government guarantee, for obvious reasons. So that made them not qualify. They say you don't provide the guarantee. Yes, and then we have total energies. They provided a Basic Fuel Price (BFP) plus a premium. What does 'premium' mean? Basic for price plus premium. Yes, that is. That makes me more. There are prices more than the one we have prepared, and there were other companies, such as Starboard, which also needed government guarantees, which we don't want to risk. We don't want to risk government funds at this moment or in this situation, which we are facing."

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Joleni Shihapela