Page 14 - DMEA Week 15 2020

DMEA FUELS DMEA
Sudan to allow private firms to import fuel
SUDAN
Sudan has been slow to abolish fuel subsidies.
SUDAN’S transitional cabinet announced on April 16 that the private sector and banks would be allowed to import fuel for the transportation, mining and industry sectors for the first time.
Sudan is struggling with severe fuel shortages, and it is running out of foreign currency reserves needed to pay for imports. Shortages were par- ticularly acute this year, reportedly because of a blockage in the pipeline that pumps crude oil from fields in Kordofan State to the Khartoum oil refinery.
Having to buy all its fuel itself has placed a considerable burden on the crisis-struck North African state’s budget. Sudan’s government is struggling to turn the country’s economy around after decades of mismanagement under the rule of ex-president Omar al-Bashir, who was ousted by the military last year. It is also still reel- ing from the loss of most of its oil wealth after South Sudan’s 2011 secession. The coronavirus
(COVID-19) pandemic has worsened matters. Sudan also maintains costly fuel subsidies to keep domestic prices affordable. The IMF and other international financiers have repeatedly called on the government to end these subsi- dies. But it is reluctant to adopt austerity meas- ures too hastily for fear of putting too great a burden on the population and causing a public
backlash.
The government had intended to begin
gradually lifting subsidies starting with its 2020 budget, but back-tracked on this plan after threats of mass protest. It still promises to end the support eventually, but is yet to shore up a timeframe for doing so. In late January, Finance Minister Ibrahim Elbadawi described the deci- sion as a “no brainer” and said the government hoped to cut the subsidies over the course of 18 months, beginning as early as March. But the phase-out has not yet materialised. ™
PUMA Energy Tanzania donates fuel to support COVID-19 mitigation efforts
TANZANIA
PUMA Energy Tanzania has arranged to donate more than TZS100mn ($43,481) worth
of motor fuel to the national government in order to support efforts to contain the coronavirus pandemic.
PUMA Energy Tanzania has arranged to donate more than TZS100mn ($43,481) worth of motor fuel to the national government in order to sup- port efforts to contain the coronavirus (COVID- 19) pandemic.
The company marked the donation last week in a ceremony attended by Prime Minister Kas- sim Majaliwa, Health Minister Ummy Mwalimu and Deputy Health Minister Faustine Ndugulile. At the event, PUMA’s managing director, Dom- inic Dhanah, gave 100 pre-paid fuel cards to the prime minister, saying they could be used at PUMA filling stations by the drivers of ambu- lances and other official vehicles transporting doctors and medicines around the country.
“The donated fuel will be used to support transport efforts in the fight against COVID- 19,” he said.
Dhanah, who also chairs Tanzania’s national committee on the coronavirus, declared that his company was pleased to assist the government on this front. “COVID-19 is [a] global pandemic that cannot be left to the government alone to fight,” he said at the ceremony. “Responsible corporate citizens and well-meaning individu- als need to support all initiatives and efforts of
the government, as we are all in this together.” Majaliwa responded by thanking Dhanah, saying he hoped private companies would fol- low PUMA Energy Tanzania’s example. The government will welcome this type of support,
he said.
The PUMA chief went on to say that his
company was taking steps to protect its employ- ees and customers during the public health emergency. All of PUMA’s filling stations have made soap and water available to the public for hand-washing, and the company provides masks and gloves to its operators, he said.
Meanwhile, he stated, all of the firm’s offices have adequate supplies of hand sanitiser. Addi- tionally, he said, PUMA’s offices and staff can- teens have introduced seating arrangements that keep staff members at least 2 metres away from each other.
PUMA is one of Tanzania’s leading retail sell- ers of refined petroleum products. Equity in the company is split 50:50 between the government and Puma Investments, which is itself owned by Angola’s national oil company (NOC) Sonangol and the Singapore-based commodity trader Tra- figura. ™
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w w w . N E W S B A S E . c o m Week 15 16•April•2020