A new state-owned firm is set to enter the lucrative Tanzanian oil marketing business which, since its liberalisation in 1999, has been in the hands of the private sector. The Commercial Petroleum Company of Tanzania Ltd, which will be a subsidiary of Tanzania Petroleum Development Corporation (TPDC), set up to specifically importing bulk oil into the country, will start a new era in the oil sub-sector, whose operators have been accused of forming price cartels and fuel adulteration. To ensure its sustainability, however, Copec will have to enter into a joint venture with a private firm.
Already, the TPDC tender board has floated an international tender inviting interested firms or consortia. The TPDC managing director, told The EastAfrican last week that the joint venture will be responsible for the importation and distribution of petroleum products within and outside the country. The formation of Copec comes almost three years after the original decision for the government to enter the oil business was made.
The re-entry of TPDC into the oil business is aimed at stabilising the sector’s operations, enhancing security of oil supplies in the country and maintaining price stability. A survey by the Energy and Water Regulatory Authority has shown that bulk procurement of oil through term tenders had helped stabilise consumer prices in countries like South Africa, Namibia and Mozambique.
TPDC long ago submitted its business plan and a Cabinet paper on oil trading and a strategic petroleum reserve procurement scheme. The Cabinet is said to have reviewed the proposals and directed TPDC to submit an implementation report, indicating that the corporation’s working capital will be taken into account in the next financial year.
Already, the TPDC tender board has floated an international tender inviting interested firms or consortia. The TPDC managing director, told The EastAfrican last week that the joint venture will be responsible for the importation and distribution of petroleum products within and outside the country. The formation of Copec comes almost three years after the original decision for the government to enter the oil business was made.
The re-entry of TPDC into the oil business is aimed at stabilising the sector’s operations, enhancing security of oil supplies in the country and maintaining price stability. A survey by the Energy and Water Regulatory Authority has shown that bulk procurement of oil through term tenders had helped stabilise consumer prices in countries like South Africa, Namibia and Mozambique.
TPDC long ago submitted its business plan and a Cabinet paper on oil trading and a strategic petroleum reserve procurement scheme. The Cabinet is said to have reviewed the proposals and directed TPDC to submit an implementation report, indicating that the corporation’s working capital will be taken into account in the next financial year.