Government Contact Center Issues Clarifying Statement Regarding the Establishment of a Government Company for Fuels

SadaNews - The Government Contact Center stated regarding the establishment of a government company for fuels that the Cabinet discussed in its session yesterday, Tuesday, the initial reading of a draft law amending the Law of the Public Petroleum Authority, which includes a reference to the establishment of a government company for fuels as mentioned in Article (9) of the Public Petroleum Authority Law of 2023. This discussion is also a follow-up to previous government decisions, including Decision No. 20 of 2018, which at the time specified: "Tasking the Ministry of Finance with taking necessary measures to establish a government company to manage the fuels sector," which was expected to start operating by the end of that year. The current governmental direction had also been discussed several months ago, prior to the current crisis in the fuels sector, as a long-term measure that requires further discussions with various related parties. The statement added that the goal of establishing the government company for fuels, owned by the state, is primarily related to governance, reform, and developing this sector, in line with the observations of governmental and civil oversight bodies. Thus, the role of the Petroleum Authority will be limited to organization, supervision, and oversight, separating it from executive tasks such as purchasing, transporting, and distributing to licensed stations and companies. This separation between executive and oversight tasks will help improve the management of the sector, organize work mechanisms, diversify sources, and improve the services provided to citizens. He continued that the proposal confirms that there will be no change in the role of licensed private companies in distribution operations; fuel and gas stations will continue to distribute and sell petroleum derivatives to citizens as is currently practiced. He clarified that this direction towards establishing the company is not a new innovation; rather, it is a procedure implemented in various countries around the world to separate the body responsible for organization and oversight from the executive body. It has also been applied in the water and electricity sectors in Palestine, which had a positive impact on the development of these two sectors. He emphasized that the upcoming steps regarding this matter involve further internal reviews and consultations with related bodies in both the private and governmental sectors.