May 24 2004
Recent consultations concerning the liberalization of the domestic petroleum market have resulted in a major legislative change, namely the new Petroleum Market Law, which was enacted on December 4 2003. The purpose of the law is to ensure a steady and economically viable supply of petroleum from both domestic and external resources to consumers in a transparent, fair and monitored market. The law provides for three types of licences:
Distributors can only supply fuel to their own retailers, and the money made from selling fuel through these petrol stations cannot exceed 15% of their aggregate domestic market share. In addition, a distributor's domestic market share cannot exceed 45% of the total domestic market; it cannot subsidize petrol stations which it operates directly, and it cannot discriminate against other retailers' petrol stations.
Retailers must carry out their activities according to a centralized sale agreement to be entered into with distributors. They may not procure fuel products from other distributors, and should not add products to their fuel. In additiion, the distance between two petrol stations must not be less than 10 kilometres (km) along highways and 1km within cities. The law amends the Electricity Market Law in relation to the powers and duties of the Energy Market Regulatory Authority Board. The board may now:
For further information on this topic please contact Okan Demirkan at Hergüner Bilgen Özeke by telephone (+90 212 310 1800) or by fax (+90 212 310 1899) or by email (email@example.com).
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.