OREANDA-NEWS. September 07, 2009. The Regulations on Licensing of the Activity Related to Procurement of Oil Products and Fuels and Lubricants approved by the recent Resolution of the President of Turkmenistan came into force. The updated license terms guarantee the protection of the legitimate rights and interests of the Turkmen state, natural and legal entities. The document provides for maintenance of the conditions conducive to selling oil products on the domestic market and the government regulation of entrepreneurial activity aimed at promoting sustainable development of the national economy, providing consumers with high-quality oil products that meet the international standards.

According to the Ministry of Oil and Gas industry and Mineral Resources of Turkmenistan the new Regulation is drafted in compliance with the requirements of the Resolution of the President of Turkmenistan “On the Issues of Management of Licensing in Turkmenistan” of February 27, 2009 adopted by the Turkmen leader in accordance with the Law of Turkmenistan “On Licensing the Particular Kinds of Activities”. According to the Resolution the new Regulations were endorsed with the Ministry of Economy and Development.

The new Regulations states that the organizations are eligible to sell oil products, fuels and lubricants in the territory of Turkmenistan if they have the license issued by the Ministry of Oil and Gas Industry and Mineral Resources of Turkmenistan. This activity is controlled by the Government to the limit established by laws of Turkmenistan. Only the state commercial institutions selected by the Cabinet of Ministers of Turkmenistan have the right to carry out this activity.

In accordance with the code of the State Classified Index the license to sell oil products, fuels and lubricants gives the right to carry out the particular activities. The new Regulations specifies in detail oil products that can be sold at retail and by wholesale. In particular, petrol and diesel fuel for vehicles can be sold at retail. Petrol and aviation kerosene, petrol, diesel fuel, residual fuel oil and other fuel can be sold by wholesale.

The license to sell oil products, fuels and lubricants is issued for three years. These services can be rendered only at the stationary and mobile filling stations as well as fuel filling stations for aircrafts and bunker vessels.

The specific requirements are set to the eligible candidates who are willing to receive the license. These include a written application on the intent to obtain the license and the list of the documents supporting the candidates’ professional and technical preparedness to sell oil products. The documents should confirm that the candidates have the reservoirs and other stations to sell fuel including the industrial premises, storage reservoirs as well as other refuelling devices and mechanisms. All these facilities are to meet the existing environmental, sanitary and epidemiological, hygienic and fire prevention standards and requirements.

The new terms of licensing the activity related to procurement of oil products are an important step taken by the President of Turkmenistan to maintain the steady favourable conditions for supply of high-quality fuel to consumers on the domestic market in compliance with the international standards. This step is a component the large-scale reforms initiated in the fuel and energy sector to achieve the goals of the Programme of oil and gas industry development for the period till 2030. The Programme provides for the fulfillment of the complex tasks to increase hydrocarbon reserves and production as well as enhance Turkmenistan’s processing potential to meet the demand in oil products on the local and international markets.