Page 8 - DMEA Week 19 2022
P. 8
DMEA POLICY & SECURITY DMEA
Tanzanian government approves
grant for fuel price relief
AFRICA TANZANIA’S Energy Minister January government sees the grant as a short-term means
Makamba said on Tuesday (May 10) that the of reducing the cost of petroleum products
government was preparing to make TZS100bn before the end of the current fiscal year, which
($43mn) in extra funding available to mitigate will come to a close on June 30, but is looking into
the economic impact of rising fuel prices. other solutions for the longer term, he explained.
In an address to Parliament, Makamba More specifically, he said, Tanzania is work-
reported that Tanzania’s president had already ing to secure loans from the International Mon-
approved this plan. etary Fund (IMF) and the World Bank to soften
“President Samia Suluhu Hassan has the impact of rising fuel prices. The country is
instructed that before we get to the new financial in negotiations with these international finan-
year, the government should disburse a total of cial institutions (IFIs) on a credit deal, he stated,
TZS100bn to reduce the oil prices in the coun- without elaborating.
try,” he said. Tanzania, like many other African states,
He also described the funds as a grant but did is heavily dependent on imported petroleum
not reveal which agencies or organisations would products. As such, it has been hard hit by the rise
be receiving the money. in world oil prices over the last few months. The
The minister went on to say that the new price of Brent crude, the main European bench-
programme would not have any effect on exist- mark, has climbed by about 35% since the begin-
ing budget-funded initiatives in Tanzania. The ning of this year.
SUPPLY & PROCESSING
Venezuela begins imports of
Iranian heavy oil for refining
MIDDLE EAST VENEZUELA has started importing Iranian Venezuela. The Venezuelan oil industry has been
heavy crude for its refineries as part of a new crippled by US sanctions, with required compo-
trade pact struck between Tehran and Caracas, nents from abroad for repairs and maintenance
Mehr News Agency reported on May 10. proving out of reach. Iran has sought to assist
The deal comes days after Iranian Oil Min- Venezuela overcome such difficulties, such as
ister Javad Owji visited Venezuela and met with with deliveries of equipment required to revamp
President Nicolas Maduro to sign a raft of new refining operations.
agreements. Iran and Venezuela, as two coun- The 146,000 barrel per day (bpd) El Palito
tries still burdened by heavy sanctions imposed refinery is set to restart a crude distillation unit
by former US president Donald Trump, have this week after extensive repairs and upgrades
taken a stand of solidarity and defiance in the using equipment imported from Iran, sent by
face of pressure from Washington. companies including National Iranian Oil Com-
Their partnership has even led to the open- pany (NIOC) subsidiaries.
ing of an Iranian goods supermarket in Caracas. Around 200,000 barrels of Iranian heavy
The US is keeping a wary eye out for any arms crude were delivered to Venezuela in mid-April.
shipments that the Iranians could potentially The buyer was the 310,000 bpd Cardon refinery,
send the Venezuelans, such as consignments of the country’s second largest. Another 400,000
military drones. barrels of Iranian heavy crude have reportedly
Iran’s heavy crude is reportedly similar in arrived in the country on the Dino 1 very large
quality to Mesa 30 crude, which is extracted in crude carrier (VLCC).
P8 www. NEWSBASE .com Week 19 12•May•2022
