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Bulk oil buying starts next month (Business to use Single Importer! Corrupt Idea)

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Kamundu, Dec 8, 2010.

  1. K

    Kamundu JF-Expert Member

    Dec 8, 2010
    Joined: Nov 22, 2006
    Messages: 1,905
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    How can you forced business to choose single company to import Oil. This is 10% deal again!!!

    Energy and Water Utility Regulatory Authority (EWURA)

    Energy and Water Utility Regulatory Authority (EWURA) says preparations have been completed for implementation of the bulk oil procurement plan any time next month.
    Speaking with this paper in an exclusive interview yesterday, the EWURA communications and public relations officer Titus Kaguo, said his office has already prepared the rules and regulations ready for the importation exercise.
    “Importation of fuel under bulk procurement plan will start soon, hopefully from January next year, after endorsement of the rules and regulations,” Kaguo said.
    He said the plan would lower shipping costs, and thus reduce fuel prices in retail markets, a relief to customers burdened with high prices. He said the government was working hard to speed up implementation of the procurement programme.
    “Our plan was to start in July last year, but we failed to make the deadline,” said Kaguo, adding: “We have submitted the rules and regulations to the Minister responsible who has been appointed again to the same Ministry and so he knows about the programme of bulk procurement.”
    A few months back, the government through the Minister for Energy and Minerals, William Ngeleja officially announced that it would start implementing the bulk oil procurement plan this financial year.
    Ngeleja said that under the plan, all private firms importing and selling oil would be required to use a single agent.
    He said the arrangement would also enable the government to closely monitor revenues, reduce congestion at the Dar es Salaam Port and control oil prices.
    “We expect the plan to be fruitful, especially on the revenue side.
    Currently the government loses a lot of money because there is no consistency between fuel imports and revenues collected,” the minister said.
    He reassured owners of private companies that Tanzania Petroleum Development Cooperation (TPDC) would not be acting as their watchdog, but would operate its own fuel stations.
    He said the decision to implement bulk oil procurement was reached after it was discovered that some firms were ordering a small load, resulting in increased congestion at the port. He said there were vessels which could carry more than 40 tonnes.
    Ngeleja said under the new arrangement, private firms would be required to organise themselves and choose a single company that will be importing the fuel on their behalf.