Algerian Government decides to end « Naftal » monopolization of oil derivatives distribution
Algerian government decided on Monday the opening of oil derivatives market especially oils, it is the first time government take such a decision in front of foreign companies “without exceptionâ€.
- After the process was dominated by the National Institution of Marketing and Distributing Petroleum Products “NAFTAL”, which is a branch of the National Company of Fuel “SONATRACH”, where the majority of private stations owners criticised “NAFTAL” monopolisation of the distribution process in the National Market, then asked for privileges to exploitation, and show readiness to sign an exclusive convention and buy Petroleum products from “NAFTAL”.
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Government decision ordered monopolisation lift on oil derivatives distribution, according to the first decree issued on Monday, after foreign companies demands to exploit Algerian market, including the French company “Total” and British “British Petroleum”, which have declared on their interest to the Algerian authorities, while “Total” alone deposited a request of opening 200 fuel station, and received an initial approval one year ago.
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The two companies’ demands focused on providing guarantees for refuelling and re-consider gas selling prices to increase their margins, in addition to that, “Total” and “BP” think that the current margin does not allow quick return of investments.
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- Elsewhere, an official in NAFTAL told Echorouk that the decision “has been ordered by the government which is responsible for its resolutions”, explaining that “Naftal” will return in the future as one of the economic dealers, after it had been the only governmental body in the field of oil derivatives distribution and marketing.