Petroleum Market Law numbered 5015 (“the New Law”), as determined in its justification, was enacted by the Grand National Assembly of Turkey (“GNAT”) at December 4, 2003 within the efforts performed to institutionalize the market economy and improve the competitive environment in order to update the current legal regulations in the petroleum and petroleum product industry in absolute coherence, regulate the markets within such approach and meet the requirements accordingly.
1- Regulative Authority:
It is inevitable for an autonomous authority that is independent from an administrative view to be given power in line with the purposes that are determined in the New Law. Thus, the New Law, for the determination, observance and inspection of the petroleum market and fulfillment of duties, has authorized the Energy Market Regulatory Authority (“the Authority”) which was authorized by a separate act, instead of the Directorate General of Petroleum Affairs (“the Directorate General”) of the Ministry of Energy and Natural Resources which was authorized by the Former Law.
2- Obligation to Obtain License and Fundamental Rights and Obligations of License Holders:
It is mandatory to obtain a license to perform below stated activities regarding petroleum market;
- Refining, processing, mineral oil producing, storing, transporting, performing free user activities and building and/or operating a plant for such purposes;
- Distributing and transporting fuel products and performing dealer activities.
3- Ownership and Expropriation
Acquiring ownership and rights of land, premises and buildings necessary for the facilities in line with the New Law by way of prior agreement execution constitutes the basis. However, it is also possible to adopt the expropriation procedure within the conditions stated in Expropriation Act in case specific facilities cannot be acquired by way of concluding an agreement. The resolution of expropriation settled by the Authority is deemed to be a public interest resolution.
4- Price Determination in the Market
In accordance with the provisions of the New Law, prices in petroleum purchase and sale are determined in line with the “world’s most reachable free market conditions”. The mentioned determination is designated to render the petroleum prices in Turkey and free market price determination to be in balance with the outer markets at all times.
5- Import and Its Execution Conditions
It is mandatory for the ones to acquire at least one of refining, distributing or bunkering license to import crude oil or fuel products. Import of crude oil and fuel products are executed by competent customs that are capable of performing specific measurements. Fuel product import is limited with the products that are stated under the sub title of the related license and such import can only be executed after the Authority is informed of the marketing projection and dealer information. All activities including import and export related to petroleum products other than fuel products (solvent, mineral oil, base oil, asphalt, solvent naphtha etc.) are performed according to the determinations designated by the Authority.