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'Plans are underway to establish country’s national oil reserve’
ippmedia.com/en/business/plans-are-underway-establish-country’s-national-oil-reserve’

June 18, 2020
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18Jun 2020
Henry Mwangonde
Dar es Salaam
Business
The Guardian
'Plans are underway to establish country’s national oil reserve’
THE government is working on plans to establish a national oil reserve which will save the country’s oil needs for a certain period of time.
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Minister for Trade and Industries Innocent Bashungwa
Minister for Trade and Industries Innocent Bashungwa revealed this yesterday when addressing the media after a meeting with officials from Energy and Water Utilities Regulatory Authority (EWURA), Fair Competition Commission (FCC) and the Tanzania Revenue Authority (TRA).
Bashungwa said the plan is part of recommendations from the meeting which among other things proposes improvements into the oil Bulk Procurement System (BPS) so that it adjusts in favour of consumers come changes of prices at global market.
The meeting came after reports that some oil marketing companies were hoarding the commodity to sell it at higher prices.
“Oil prices have declined, but we have noticed that in some regions the prices are still high because of some infaithful dealers who are hoarding the commodity to create an artificial shortage,” he said.
The minister said oil prices at international markets have gone down hence oil dealers were supposed to sell the commodity at government’s indicative price.
The move by minister Bashungwa comes barely a day after energy minister Dr Medard Kalemani gave seven days to Ewura to conduct a crackdown on big fuel dealers who hoard fuel to sell at higher prices.
In his remarks, Ewura acting director general Godfrey Chibulunje said laws are clear on how oil business should be conducted in the country.
Earlier this month, Ewura announced a record fall of oil prices in the country thanks to the world market prices.
Ewura attributed the fall in prices due to the global trends that has largely affected oil prices at the world market.
The regulator advised oil marketing companies to feel free to sell their products at a price that gives them a competitive advantage provided that, such price does not exceed the price cap.
 
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