The entry of private operators into the fuel logistics chain, through their liberalisation, means Angola will have more storage capacity, which is currently limited, the director general of the Regulatory Institute for Oil Derivatives (IRDP), Manuel Albino Ferreira said on Wednesday in Luanda.
The director general of the IRDP recalled that this activity is currently conducted under a monopoly by Sonangol Logística, a subsidiary of the state oil company Sonangol and added that what is intended in the future is to open this segment to other operators.
Albino Ferreira said that liberalisation was intended to ensure greater competition in the sector, and opening the market to other players will put an end to monopolies that have adverse effects on the development of the sector, according to Angolan state news agency Angop.
The new head of the IRDP also said it was necessary to start making large investments to create conditions for storage of fuels on land in order to substantially reduce or even eliminate floating storage.
Regarding the entry of new private operators, Ferreira said that within three months the Institute will have to present a proposal to revise the presidential decree currently in force.
The purpose of the IRDP is to regulate the oil products sector, and it is responsible for protecting the rights and interests of consumers in relation to prices, services and quality of service and promoting and fostering competition in order to improve the efficiency of the activities subject to its regulation. (macauhub)