Minister overturns Nasan competition conditions

Nasan Energies has been given the greenlight to buy fuel from Vitol after the minister of industries, mines and energy overturned the competition commission’s decision to prevent such purchases.

Nasan bought 42 service stations from Vivo Energy in May.

As a condition of approving the sale, the Namibian Competition Commission prohibited Nasan from buying fuel from Vitol – Vivo’s parent company – for a period of five years due to concerns that this would reduce competition in the fuel sector.

In a Government Gazette released on Friday, energy minister Modestus Amutse suspends these conditions placed on Nasan’s merger “until further notice”.

Energy analyst Gawie Kanjemba says the minister’s decision was made against the background of the immense financial burden of importing fuel to the country.

“The National Energy Fund is running on fumes after absorbing massive under-recoveries, and this arrangement stops the financial bleeding by saving the state premiums without adding a sovereign guarantee to our national debt,” he says.

The reversal of the merger conditions is not permanent, according to the gazette.