Johannesburg - Government may intervene to ensure the Liquid Fuels Charter, that seeks to bridge the economic gap in the fuel industry, is implemented properly, Energy Minister Dipuo Peters said on Thursday.
Speaking at the third African Energy and Mineral Forum, Ms Peters said so far progress on implementing the charter was "not very impressive".
"The report I received regarding the implementation of the Liquid Fuel Charter is not impressive. What is critical to note is that the lack of transformation in the sector and failure to create inclusive economy is untenable," she said.
She said if industry players were unwilling to move, government would have to intervene.
Impoverished communities in the rural areas of KwaZulu Natal were forced to buy petroleum products at a higher price, while others in the Transkei area of the Eastern Cape people were mixing paraffin with water to increase volume.
This dangerous, illegal deed might come to an end if we can consider bringing liquid fuel services closer to communities in deep rural areas," she said.
The Liquid Fuels Charter, signed in 2004 wants oil companies to sell a quarter of their operations to historically disadvantaged investors by 2010, while bridging the economic divide within the industry.
The charter applies to the privately owned companies in all parts of the sector's value chain, including exploration and production of oil, liquid fuels pipelines, oil refining, and trading.
Quoting information received from Empowerdex, Ms Peters stated that the liquid fuel industry had not been able to comply with the charter in the crucial elements of ownership, control, and procurement.
"The current draft reports indicate that not even one of the privately owned companies will be able to meet the ownership and control requirements as projected in 2006.
"Although this might be partly owing to the current world economic meltdown, it also has to do with the manner on how some of these deals have been structured and financed."
She added that what was critical to note was the lack of transformation in the sector, and the failure to create an inclusive economy.
"It is rather disappointing to be informed that most companies have failed to achieve any meaningful change on spent procurement for the historically disadvantaged," she added.
"Any exclusive development is a time bomb and if we maintain the status quo of inequality, we will be heading for a disaster," Ms Peters added.
