Page 11 - DMEA Week 14 2020

DMEA FUEL DMEA
Tanzania says pandemic not likely to disrupt fuel supplies
TANZANIA
Tanzania’s Energy
and Water Utilities Regulatory Authority (EWURA) has indicated that it does not expect domestic petroleum product markets to suffer any disruptions as a result of the coronavirus outbreak.
TANZANIA’S Energy and Water Utili- ties Regulatory Authority (EWURA) has indicated that it does not expect domestic petroleum product markets to suffer any disruptions as a result of the coronavirus (COVID-19) outbreak.
According to Titus Kaguo, EWURA’s com- munications and public relations manager, the country has enough fuel on hand to cover demand for the next two months. “We usually import fuel in advance to serve the country for two months ahead, which means we are not expecting to experience any fuel shortage during this time, when the country is battling COVID-19.”
Additionally, he said, the government has a policy of maintaining petroleum product reserves in order to cushion supplies from mar- ket shocks. “As per the Petroleum Act, the coun- try needs to have a reserve to cater for at least 15 days,” he explained.
The country is also due to receive additional shipments of fuel in the near term, he added. “As I am speaking to you today, we’re looking forward to receiving a consignment of fuel that will be on reserve until July 2020, when it will be available to the market,” he said.
Kaguo went on to say that Tanzania had no plans to hike retail or wholesale fuel prices in response to the coronavirus pandemic. He also stated that the government would penalise
dealers who increased their prices in a bid to take advantage of the outbreak.
New fuel services
In the meantime, he said, EWURA has drawn up plans to ensure that all of the country’s residents have adequate access to fuel supplies. Specifically, he said, the agency intends to launch mobile petroleum product delivery services serving rural communities.
These mobile services will be a better option for rural areas, as they will abide by current safety regulations, he claimed. “The established services (mobile fuel stations) are in accordance with the Petroleum Retail Operations in Town- ship and Village Rules, 2014,” he said.
By contrast, he said, existing facilities often take too many risks, such as storing and selling fuels in gallon jugs.
Kaguo was speaking shortly after EWURA reported that prices for some petroleum prod- ucts were down. On April 2, the agency said that retail rates for gasoline, diesel and kerosene had slid by 2-10% for consignments passing through the ports of Tanga and Dar es Salaam, with pump prices for fuel passing through Dar es Salaam down by 5-10%.
“The decline in local fuel prices [is] mainly due to changes in the world oil market prices and BPS,” the statement said, referring to Tanzania’s Bulk Procurement System (BPS). ™
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