In September 2017, the DTI issued a Proclamation to publicise the intention of the Department of Energy and the Petroleum and Liquid Fuels Industry to align the B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter with the B-BBEE Act, the B-BBEE Codes of Good Practice and the B-BBEE Policy Framework to ultimately serve as a Sector Specific Code of Good Practice.
The goal was to establish a B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter Council and seek consultation with Stakeholders. Significant work was done. However, the final charter has not been published via a Gazette as yet, but the basic detail is available for use by the public.
The Petroleum and Liquid Fuels B-BBEE Codes and scorecards apply to the following sub-sectors:
- Liquid Fuels pipelines, single buy mooring (SBMs), depots and storage tanks.
- Oil refining and synthetic fuel manufacturing plants, including lubricants.
- Oil and Gas trading including imports and exports.
- Wholesale and Retail Assets/Infrastructure.
All major stakeholders were invited to be part of a council forum at which consultation would occur. One of the major stakeholders is the Fuel Retailers Association (FRA).
The FRA published a draft working document in March 2018 outlining a “DRAFT RETAIL OPERATOR AND SITE OPERATOR SECTOR SCORECARD”
Additionally, the Department of Energy presented a paper titled “PETROLEUM AND LIQUID FUELS TRANSFORMATION” on 23 November 2017.
The B-BBEE Petroleum and Liquid Fuels Sector Transformation Charter will, upon promulgation in terms of Section 9 of the B -BBEE Act, serve as the Petroleum and Liquid Fuels Sector Codes of Good Practice.
From the Fuel Retailers working document a draft summary of priorities was compiled for B-BBEE compliance
Additionally, the working document proposes that new sub-elements will be added to the B-BBEE Codes of Good Practice.
Some additions include:
- Management Control: Addition of compliance criteria linked to Semi-skilled and unskilled positions.
- Management Control: Use of Black Youth Employees for compliance purposes.
- Skills Development: Participation of Black Staff in Advancement Programmes as a percentage of all Junior Management and Semi-Skilled and Unskilled Employees.
- Enterprise and Supplier Development: Addition of several compliance criteria linked to Local Economic Development.
- Ownership: Black Employee Ownership Programmes.
- Use of the Modified Flow-Through principle will not be allowed.
- As the Charter has not yet been finalised the above information is subject to change.