The Citizen

December 15, 2011

To what extent is this deal going to benefit petroleum dealers and customers in the country?

We are working on the basis of government’s directive. What we were directed was to embark on bulk procurement of petroleum products in line with Petroleum Act Cap 392 and Petroleum (Bulk Procurement Regulations 2011).

We are implementing this programme in accordance with the laid down procedures, the criteria set by the government on tendering process and International Competitive Bidding (ICB) process.

Why did PIC choose a single importer rather than a consortium  of importers like in Kenya? 
In Kenya the Bulk Petroleum Procurement System is based on specialization in that there are selected companies in accordance with the item of petroleum. This means that no company is allowed to import petrol, kerosene, jet oil and diesel.

The one who is importing diesel is not allowed to import petrol and other products. Kenya has more reliable and efficient port infrastrures than Tanzania. In Kenya there are huge cargoes imported by giant ships.

The ships which anchor at our ports are not very big. They have capacity of transporting not more than 35,000 metric tonnes of petroleum products a day.

You have said that so far this is a biggest deal in East Africa as well as in Africa in general. What criteria have you used?

According to information we have there is no other African country  which is importing this amount of refined petroleum products. Our demand for petroleum products is huge because of power crisis and we do not have a refinery like Kenya, Zambia and South Africa…Read more.