Caspian Report - Issue 06 - Winter 2014

following the signing and termination
of the agreement. They must employ
the same practices across their own
stations and the stations run by their
contracted dealer. They shall not distribute
petroleum to the dealers of
other distributors except for independent
dealers.
IMPORT PERMIT FOR
INDEPENDENT DEALERS
The draft stipulates that independent
dealers can import petroleum only for
their dealership activities. Moreover,
they will be able to establish storage
and transit facilities that are subject to
authorisation.
On the other hand, they will be obliged
to establish and operate necessary automation
infrastructure in order to prevent
the sale of illegal petroleum in their
stations, in accordance with the principles
set out by the Ministry.
60.000-TON OBLIGATION OF FOR
DISTRIBUTORS
According to the Petroleum Market Law
No. 5015 (Art. 9), distributors must
provide the institution with dealership
information and a distribution projection
for a minimum of 60.000-ton white
product annually (gasoline, diesel). This
draft removes this obligation.
45-PERCENT AND 15-PERCENT
RESTRICTION TO DISTRIBUTORS’
MARKET SHARE
According to the current law, distributors
can open dealerships both under
their ownership and under contract.
The distributor’s sales volume
via its stations may not exceed 15%
of its domestic market share. Domestic
market share of distributors may
not exceed 45% of the total domestic
market. The distributor’s practices
should be the same across its sta-
73
CASPIAN REPORT, WINTER 2014
STAR Refinery in
Aliaga, Izmir.