Petroleum Importation Coordinator (PICL) has announced that due to financial constraints, the number of oil firms participating in competitive bidding for bulk purchase of petroleum products has declined to four from seven to eight. Speaking in Dar es Salaam on Thursday, the PICL General Manager, Michael Mjinja said the primary reason for such a major decline was financial constraints, as bulk purchase for petroleum products is highly capital intensive.
But, he, noted that they look at the issue a chance for banks and financial institutions to fund oil marketing firms. Mjinja said : "The main reason is financial ability of the oil marketing companies, but we look at it as an opportunity for banks and financial institutions to venture into the area."
According to him, a total of 28 oil marketers are qualified take part in the competitive tender for bulk oil purchase, but 7 to 8 have been regular bidders since the process was launched in 2011.
He added that it costs around US$ 400 million to purchase petroleum products for a month a figure that puts off many qualified firms.
But, he, noted that they look at the issue a chance for banks and financial institutions to fund oil marketing firms. Mjinja said : "The main reason is financial ability of the oil marketing companies, but we look at it as an opportunity for banks and financial institutions to venture into the area."
According to him, a total of 28 oil marketers are qualified take part in the competitive tender for bulk oil purchase, but 7 to 8 have been regular bidders since the process was launched in 2011.
He added that it costs around US$ 400 million to purchase petroleum products for a month a figure that puts off many qualified firms.