Tanzania: PIC restructuring finalised

The government is finalising the process of transforming the Petroleum Importation Coordinator into an agency, Petroleum Bulk Procurement Agency (PBPA), an initiative set to promote efficiency in the sector.

The Energy and Water Regulatory Authority (EWURA), Director General Mr Felix Ngamlagosi said in Dar es Salaam at the weekend that the new government agency will continue to be regulated by EWURA.

“The objectives behind the establishment of fuel importation coordinator will remain intact and fully assumed by the newly state owned agency going by the PBPA. Tanzania consumes about 1.54 million cubic metres per annum of petroleum products.

The main objective of the petroleum bulk procurement system is to establish a petroleum supply system in which all players will be assured of security of supply at the most competitive prices possible by purchasing from a pool of imports obtained from suppliers selected through a competitive bidding process to take the advantage of the economies of scale.

He added, “It is just a transformation from private entity into public that will involve some transferring procedures to be observed,” adding that EWURA will continue with its duty as the regulator of the government agency.

The Petroleum Importation Coordinator was established by the Petroleum (Bulk Procurement) Regulations of 2011 as amended from time to time.

The PIC General Manager, Michael Mjinja, said at the weekend after announcing the winner of the company that will supply fuel for February that it was the last tender to be conducted by PIC, as the exercise will be conducted by the government agency created for that purpose.

During the tender, Sahara Energy Limited, a Nigerian oil company, won a tender to import fuel under the Petroleum Bulk Procurement System (BPS) for the month of February next year.

He said that they hope that PIC will be incorporated into the government agency, but was optimistic that the government has the interest of Tanzanian consumers at heart and will make sure that petroleum prices remain competitive.

He said that the system has helped in improving quality of petroleum products, stabilized cup prices, improved taxation and has helped to reduce demurrages at the port, adding that apart from transparency and increasing government revenue, the BPS has also assisted the country to save foreign currency used to purchase petroleum products.
Source: Daily News, reported by Sebastian Mrindoko, from Dar es Salaam, Tanzania

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