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PUMA ENERGY – CALL FOR EXPRESSION OF INTEREST

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CALL FOR EXPRESSION OF INTEREST

The Lesotho Petroleum Industry Association is an association of the liquid fuels wholesalers registered in Lesotho

The Oil Industry hereby invites Expression of Interest (EoI) from suitable entities to provide services to the oil industry.

The entity will provide amongst others:

  1. Fuel pricing and Regulation

The entity is responsible for monitoring all elements of the regulated fuels prices, interacting with the relevant sections of the Government of Lesotho to understand any changes in or to the pricing structure and advising members of the Association.

The regulated liquid fuels sold in Lesotho at present are :

  • Unleaded Petrol 93 Octane
  • Unleaded Petrol 95 Octane
  • Diesel 0.005% Sulphur
  • Illuminating Paraffin are.

Typically, prices are changed monthly. Price changes are determined, communicated and gazetted by the Petroleum Fund, which is responsible for administering all the elements included in the calculation of the regulated fuels prices.

  • Review elements of the regulated price

Each year, the entity is responsible to conduct a review of four elements of the regulated price for each product, viz

  • Wholesale Margin
  • Primary Transport Cost; Bridging (from source to storage facility)
  • Storage & Handling
  • Secondary Transport Cost; Delivery (from storage facility to customer).

Data are gathered from each of the Association members, analysed, amalgamated to form an Industry view, compared to the existing value of each of these elements in the price structure. Recommended changes to those values are presented to the Regulator.

Certain elements of the pricing calculations:

  • Worldscale Freight
  • Demurrage
  • Cargo Dues
  • Coastal Storage

are updated annually by reference to independent data. The entity is responsible to ascertain these values and ensuring the relevant values are included in the pricing calculations.

  • Monthly Responsibility

Each month, entity is responsible to prepare a comparison between the product element inherent in the regulated price and an actual product price for the same period, calculated using independent, arms-length data based on acquiring product on the international market and transporting it to Maseru. Where the calculated actual product price exceeds the product element in the regulated price, an under-recovery in the invoiced price is recorded and quantified. Where the product element in the regulated price exceeds the calculated actual product price, an over-recovery in the invoiced price is recorded and quantified.

Each member of the Association submits to the entity a monthly return of its sales volumes, by product. The unit rate over- or under-recovery is applied to each member’s, and Industry total, volumes, to maintain a running slate of the month’s over- or under-recovery movement and the overall cumulative position. Each member is advised of the Industry position and its own individual position.

  • AD HOC INVESTIGATIONS/ANALYSES

The entity is responsible to conduct ad hoc investigations and analyses of subjects relevant to the Association and its members as requested/agreed between the Association and members.

  • INDEPENDENT THIRD PARTY

The entity is responsible to act as an ITP, in order to ensure that in all interactions

  • between members of the Association and/or
  • between the Association, its members and the Regulator,
  1. best practice in maintaining a competitive environment is rigorously applied
  2. the confidentiality of members’ data is safeguarded effectively.

Interested entities should submit their profiles by means of an email to Nobelungu.Debeshe@pumaenergy.com by no later than  31 of January 2024

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