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Bost Saga; Think Again Mr. President

When I initially thought about writing this piece, I planned to quote and refer to several Sections in the Nation Petroleum Authority Act 2006, Act 695 but I am now left confused as to which to quote.

 I now understand why Senyo Hosi who is Chief Executive for Chamber of Bulk Oil Distributing Companies was shocked at the claims the representative for ZupOil was making in his only media engagement.

What started as concerns over the impropriety of the sale of 5 million litres of purportedly contaminated fuel has become a mind blowing saga largely because of the way the National Petroleum Authority (NPA) and the Ministry of Energy have handled it.

It became even more shocking when the President at his press engagement sought to justify the stance the two authorities have taken on the matter by jumping on the "non-existence of regulation" argument.

From my understanding, "non-existence of regulation" argument means that Act 695 is silent on what to do in such a situation.

To make the above argument you have to convince yourself of one thing; what was sold is not a "petroleum product." Once you make yourself believe this, you can make the famous "lacuna" argument.

This however raises one question: if the product sold is not a "petroleum product" then what is it? If you miss a quantity of a "petroleum product" with a larger quantity of another, what will the resultant product be called? A non-petroleum product?

The reason the Energy minister and NPA are running away from the term "petroleum product" is that once that is settled proving a violation under the Act is easy; in fact violations. Let me just list a couple of the sections which may apply.

11. (1) A person shall not engage in a business or commercial activity in the
downstream industry unless that person has been granted a license for that
purpose by the Board. 

(2) The business or commercial activities of the downstream industry in respect of
crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated
petroleum products are
(a) Importation
(b) Exportation
(c) Re-exportation
(d) Shipment
(e) Transportation
(f) Processing
(g) Refining
(h) Storage
(i) Distribution
(j) Marketing, and
(k) Sale. 

Construction of petroleum depots
30. A person shall not conduct or operate in the petroleum downstream industry
(a) a petroleum products retail station,
(b) a petroleum products storage depot and pipeline,
(c) a liquefied petroleum gas depot, or
(d) an oil refinery
Without the prior written authorization of the Board. 

Prohibition to sell petroleum products
32. (1) A person, other than a person licensed under the Act, shall not
(a) sell or offer for sale a petroleum product, or
(b) be in possession of a petroleum product in quantities unreasonably in excess of
that person’s immediate requirement, or
(c) Receive a petroleum product for sale.
(2) Subsection (1) does not apply to petty trading in kerosene. 

These are just  a few of the provisions that may apply in this situation and I believe they are straightforward and easy to understand.

From what we all know so far, Movenpiina was unlicensed as at the time it won the credit contract to acquire the product, whiles ZupOil had constructed and running a storage depot without license and perhaps operating without license. That is why I think these laws apply.

On the question of whether the product for sale was a petroleum product, this is how the law describes petroleum products

“Petroleum products” means products created through the refining of crude oil by
distillation, cracking, solvent refining and chemical treatment which turn out as
primary stocks in the form of liquefied petroleum gas, naphtha, gasoline, kerosene,
aviation turbine kerosene, gas oil, residual fuel oils, waxes and petroleum, asphalt, bitumen,
coke, lubricants refinery petroleum fractions and include other petroleum designated
products; 

To be very fair Mr. President, your attempt to explain left us more confused and in search of more answers. Please re-evaluate the evidence

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