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The National Assembly of the Central African Republic unanimously approved a draft law to reorganize the hydrocarbons sector, with the aim of modernizing the legal framework and enhancing oversight and transparency in a sector that witnesses frequent disruptions in supplies and distribution.
Representatives voted on the project during a public session held on July 13, after the Production, Natural Resources and Environment Committee presented a report that addressed the deficiencies suffered by the oil sector in the country.
According to the parliamentary committee’s report, the text aims to address the recurring fuel shortages, the limited number of service stations outside the capital, Bangui, the weakness of regulation and oversight mechanisms, in addition to aligning legislation with the transformations witnessed in the oil derivatives market and governance requirements.
The project also stipulates the establishment of an authority to regulate the oil sector, which will strengthen oversight of import, storage and distribution activities, and ensure greater transparency in managing supplies and dealing with companies operating in the market.
Regulating import and distribution
Parliamentary discussions dealt with the exceptional licenses granted by the government to some companies to import fuel.
The Minister of State in charge of Justice, Arnaud Jobay-Abazin, representing the Minister of Energy, said that these licenses are only granted in cases of force majeure and exceptional circumstances, and do not constitute a permanent import system. A number of representatives called for this mechanism to be abolished or subjected to more stringent controls.
The representatives also called on the government to launch transparent tenders to choose importers capable of supplying various regions of the country, instead of concentrating supplies in the capital, and to rehabilitate gas stations that were vandalized or went out of service in the governorates.
In turn, MP Anisé Georges Delogille called for reactivating the transport of petroleum derivatives across the Congo and Ubangi rivers, from the port of Matadi through Kinshasa to Bangui, considering that the river route contributed to reducing transportation costs and prices at the stations.
The Central African Republic, a landlocked country, relies on two main fuel import routes: The first is via the land route and Cameroonian ports, and the second is the river route through the Democratic Republic of the Congo during periods when water levels allow the movement of boats.
The new law comes after years of fuel crises and queues in front of Bangui stations, while large inland areas suffer from the absence of service stations and the difficulty of transporting petroleum derivatives to them.
