1. Introduction
The publication of the Fuel and Services (Control, Marking and Quality) Regulations, 2025 marks a significant regulatory shift in Lesotho’s petroleum and fuel services sector. Issued under the Fuel and Services Control Act, 1983, these Regulations introduce an integrated framework governing licensing, quality control, fuel marking, transportation, storage, retailing, enforcement, and penalties across the entire petroleum value chain.
The Regulations reflect a clear policy objective: to combat fuel adulteration, smuggling, under-declaration, tax evasion, and unsafe handling of petroleum products, while promoting consumer protection, regulatory transparency, and Basotho participation in the oil industry.
2. Scope and Application
The Regulations apply broadly to all persons and entities involved in petroleum-related activities, including:
- exploration, extraction, refining, importing and exporting;
- storage, transportation and distribution;
- retailing and wholesale supply;
- oil recycling and lubricants;
- mobile filling stations;
- large consumers of petroleum products.
They apply to both new licence applications and the renewal of existing licences, as well as to all petroleum storage facilities, retail outlets and road tankers used in petroleum transportation.
3. Licensing Framework
A central feature of the Regulations is a detailed, licence-based regulatory regime, with distinct licences for specific activities, including:
- Oil Refinery Licence
- Oil Recycling Licence
- Oil Company Licence
- Local Oil Transporter Licence
- Oil Retail Licence
- Special Petroleum Products Permit
- Petroleum Products Large Consumer Licence
- Illuminating Paraffin Bulk Tank Licence
- Mobile Filling Station Licence
- Lubricants Licence
Each licence category has activity-specific eligibility criteria, documentation requirements, environmental approvals, safety standards, and operational obligations.
Notably, licences will not be issued unless applicants demonstrate compliance with tax laws, environmental laws, health and safety requirements, and land-use approvals.
4. Verification Committee and Regulatory Oversight
The Regulations establish a Verification Committee, comprising representatives from multiple government departments, including energy, environment, trade, legal services, and land administration.
The Committee’s functions include:
- evaluating licence applications and renewals;
- making recommendations to the Department;
- monitoring compliance and operational capacity;
- ensuring that licensing decisions align with national policy objectives.
Where applicants hold multiple licences, preference may be given to new Basotho citizen applicants, reinforcing the localisation policy embedded in the Regulations.
5. Fuel Marking Programme
A cornerstone of the regulatory framework is the Fuel Marking Programme, aimed at authenticating petroleum products and preventing:
- adulteration;
- dilution;
- smuggling;
- unauthorised imports;
- tax and levy evasion.
All petroleum products imported into Lesotho must comply with prescribed specifications and be marked with an approved chemical marker at designated border posts. The marking process is overseen by the Ministry through service contractors and enforcement agencies.
The Regulations strictly prohibit unauthorised marking, possession of markers without authority, tampering with seals, or dealing in unmarked, over-marked or under-marked petroleum products.
6. Quality Control, Testing and Inspections
The Regulations empower inspectors to:
- enter premises and vehicles without prior notice;
- take petroleum samples at depots, retail outlets, tankers and consumer facilities;
- conduct detector tests and laboratory analyses;
- seal facilities, pumps or vehicles where non-compliance is suspected.
Operators may dispute test results within prescribed timeframes, but failure to comply with inspection processes constitutes an offence.
7. Obligations of Licensees
Licensees are subject to extensive ongoing obligations, including:
- maintaining proper records of petroleum products;
- submitting monthly volume and levy reports;
- ensuring calibrated and serviced dispensing equipment;
- displaying gazetted prices and product specifications;
- conducting periodic environmental audits;
- maintaining adequate insurance cover for environmental and third-party risks;
- notifying the Department of changes in shareholding, operations or closure.
Failure to comply may result in suspension, non-renewal, cancellation of licences, or criminal prosecution.
10. Conclusion
The Fuel and Services (Control, Marking and Quality) Regulations, 2025 represent one of the most comprehensive regulatory interventions in Lesotho’s petroleum sector to date. Businesses operating in this space must urgently review their licensing status, operational structures, supply chains, and compliance systems to avoid significant regulatory and financial exposure.
For operators, investors and large consumers, the Regulations signal a move toward greater transparency, accountability, consumer protection, and regulatory enforcement, while also creating opportunities for compliant and well-structured participation in Lesotho’s evolving energy sector.