Business Eswatini Engagements with ESERA on Licencing of Petroleum

Following your concerns raised on the License Fees which were recently introduced by the energy regulator (ESERA) we would like to report back to you on the multiple engagements we have held. Notably, we raised the escalating cost of doing business and the negative impacts of regulation which at most times seem to be arbitrary and serve to disrupt normal business operations among a myriad of other issues. We are happy to note that most of the concerns were heard by the regulator such as to make specific positive consideration in this regard.

In one positive outcome of the engagements, commercial petroleum clients who wish to source directly from the wholesaler were granted a dispensation to pay a single license fees which covers multiple branches under them (ONE application fee for various sites). Members are required to attach a list of all sites they have on their application to qualify for this.

Another positive outcome was that commercial petroleum customers who do not consume big quantities but are still within this regulatory domain may apply for annual permits which are clustered according to usage rate. A schedule of these quantities and applicable levies is available below (PDF Document).

We are aware of the disruption any new system brings to your operations especially that which requires further injection of financial resources at a time when the economy can ill-afford anymore burden. We still hold the view and advocate for the position that all artificial barriers should be removed and instead we need the support to restore and uphold vibrancy of the business sector and by extension, the whole economy. The regulator has welcomed an invitation to further engagements on the subject in order to ensure that the common objective is met: a vibrant industry enabling the safe and harmonious consumption of petroleum products. For your reactions to this update please kindly send them through to Thandeka Dlamini @ thandekad@business-eswatini.co.sz .

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