Tuesday, November 6, 2012

Oil companies starts supplying the borrowed transit oil

SOME Oil Companies have started to transport the borrowed bulk of transit oil to various upcountry regions which are hit by fuel scarcity from the Dar es Salaam based main reservation depots. A spot check at four main oil depots namely Puma (former BP), Oil com, Camel oil, and Gapco which are all located at Kurasini suburb in Dar es Salaam last week over the weekend witnessed a number of trucks with their oil tankers lined up at these depots and security guards on duty were seen busy directing the drivers to the main packing bay for loading the consignment. Efforts to get spokesmen for further clarifications about the issue from these oil depot stations proved futile as for yesterday’s Saturday were all not on duty. But some interviewed drivers and security guards confirmed to this writer that, the bulk oil were on transit to upcountry regions. However, they said adding that, the exercise started late on Friday afternoon and was so hectic as it had involved the arrangements of trucks and checking up of other documentations to ascertain their authenticity, said one security guard at the gate of Gapco depot. In early this week, the government had borrowed 50 percent of the fuel destined for the country’s landlocked neighbours in a bid to avert an impending fuel crisis which has occurred in the country with the upcountry regions being the most hit by the scarcity. EWURA’s Public Communications Manager, Titus Kaguo told a press conference in Dar es Salaam on Friday this week that, half of the 80 million litres held in transit would be sold locally after the oil firms had fulfilled “conditions of the Tanzania Revenue Authority (TRA).” He said already nine local oil firms had ordered a total 21.3 million litres of diesel, 5.2 million litres of petrol as well as 1.4 million litres of kerosene to cover the deficit, but added that they would not be allowed to sell unless they have settled down conditions imposed by TRA that requires them to pay 100 percent of their taxes.

However, EWURA reckons that fuel supplies would come back to normal “within a couple of one weeks’ time basing on the assumptions that “two big oil ships” could be offloading enough fuel to meet the entire country’s needs next week. Meanwhile, a spot check at various filling stations within Dar es Salaam city showed that some of the fuel outlets have fuel stocks for sale in due course, while reports from upcountry still painting a worse scenario. In the unfolding circus of words, the minister of Energy and Minerals, Professor Sospeter Muhongo on Friday evening ordered Ewura’s management to cancel oil import licenses of companies alleged to have failed to import fuel for six consecutive months.  Muhongo issued the order at a news conference in Dar es Salaam on Friday evening which was also attended by key oil importers. He said Ewura should report to him on the implementation of the order tomorrow (Monday). Currently, Tanzania uses a new bulk oil procurement system under which only few oil companies import oil in bulk and sell it to the others as opposed to the old joint procurement system where oil companies would import on their own. Some economic critics have appreciated the move by the government and its efforts to get rid of the situation which has to a greater extent proved a success in mid of this week after it had awakened industry stakeholders  including key players by taking effective control measures that aimed at remedying any possible escalation of the crisis which is likely to disrupt people’s economic activities. Ms. Consolata Masalu an economist with a foreign leather company based in Dar es Salaam said early this week that, the government has to be careful and time conscious to ensure that the oil companies who involves in bulk procurement are time conscious. Consolata is on the view of the fact that, once the supply of oil is left staggering, many economic activities dwindles an aspect that disrupts the economy for oil is an engine of economic growth.

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