The government’s plan to introduce a bulk procurement system for petroleum products is threatened by a plot to halt or delay its implementation, even as the relevant consultancy firm presents its final report.

The system seeks to make it mandatory for importers to jointly procure petroleum products under International Competitive Bidding, through a private sector company to be run in a joint venture with a government corporation, Commercial Petroleum Company of Tanzania Ltd.

Investigations by The EastAfrican reveal a deliberate move by some powerful quarters to push implementation of bulk procurement to start after next year’s general election, even though the debate about the system started soon after the 2005 polls.

Intense lobbying

Sources told The EastAfrican that, while key stakeholders such as the Energy and Water Regulatory Authority (Ewura) and oil marketing companies agree in principle that bulk oil procurement will be beneficial to the oil sector, there are forces outside government that want the plan halted.

The sources alleged that some oil dealers are conducting intensive lobbying to stop the introduction of the system, even contributing Tsh2 (0.02 US cents) for every litre of fuel sold to fund the cost of postponing it.

Already, Ewura has been summoned thrice since July by parliamentary committees such as Energy and Minerals, Finance and Economic Affairs, and Infrastructure Development for a status report.

The current procurement and distribution system is managed by the oil marketing companies.

Demand for oil products in Tanzania has grown steadily in tandem with the growth in the economy, posing serious challenges to an uncontrolled import system.

Proponents of bulk importation say since Ewura was given the legal mandate in 2007 to oversee the implementation of the new system, the authority has had a rough time facilitating the commencement of the new order.

According to documents made available to The EastAfrican, the Tanzania Association of Oil Marketing Companies (TAOMC) told an appraisal meeting held in Dar es Salaam that “there is no need for a petroleum importation co-ordinator and those individual importers may go on with the current arrangement as long as there is an improved efficiency at KOJ [Kurasini Oil Jetty].”

The November 11 meeting was attended by representatives from TAOMC, Tanzania Ports Authority, Ewura, Ministry of Energy and Minerals, and Tanzania Revenue Authority.

TAOMC said it was important to ensure efficiency at Kurasini by requiring that importers bring in ships of not less than 25,000 metric tonnes that can carry multiple products and that oil companies with a single offloading line add more within 12 months.

William Ngeleja, Minister for Minerals and Energy, told The EastAfrican he was not aware of the Tsh2 allegations.

But he confirmed the ongoing intense lobbying by some firms to block the new oil procurement system.

“I can confidently tell you that there is no going back on the issue. The system is legally backed and we are going ahead with it. The government will protect their interests, but not exploitative interests,” said Mr Ngeleja.

Mohamed Missanga, chairman of the Parliamentary Committee for Infrastructure Development, told The EastAfrican in Dar es Salaam last week that any move by TAOMC to block the system would be futile since it has legal backing.