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Zanzibar to start buying petroleum in bulk

Thursday February 23 2017
TZ fuel

A petrol station in Dar es Salaam. PHOTO | FILE

Zanzibar is set to introduce a bulk procurement system for petroleum products used on mainland Tanzania. Currently, individual companies import petroleum products sourced from different suppliers.

“The new system is more effective and offers competitive prices as well as a more reliable supply of petroleum products,” said Bakir Makame, a procurement officer at the Zanzibar Utilities Regulatory Authority (Zura).

Mr Makame said that the system would ensure sourcing is done from reliable suppliers selected through a competitive bidding process.

“We are looking for qualified companies with enough capital to guarantee a reliable supply of petroleum products in the country at a reasonable price,” he said.

Operations

In mainland Tanzania, the system is operated by an independent entity known as the Petroleum Bulk Procurement Agency, which works with the Energy and Water Utilities Regulatory Authority (Ewura). In Zanzibar, it will be operated by Zura.

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Through the bulk procurement, Zura seeks to strengthen the inspection system and services at storage depots and delivery areas.

“We also want to engage a firm that will inspect, survey, test and certify petroleum products from the point of origin before they enter Zanzibar,” said Mr Makame.

The inspection firm will help in the fight against smuggling of petroleum products by introducing check points.

“These measures will help check adulteration of fuel in transit and at fuel stations,” said Mr Makame.

The firm will also control calibration of products in order to ensure that consumers get value for their money.

On mainland Tanzania adulteration had reached alarming levels before Ewura was formed and BPS was introduced.

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