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Publish Date : 02-Feb-2016

Addax Energy SA has been successful to secure a bid to deliver petroleum products in the country for March this year. The company has own the deal yesterday with its offering of the lowest bid, surpassing other contenders in the race. Addax Energy SA has presented the lowest weighted average premium so far at 32.349, while SAHARA Energy DMCCs bid stood second at 34.309.

The oil firm has offered GASOIL at premium of 32.580, motor spirit at 29.430, JET A-1 at 44.190 and IK at 44.190. The recently created Petroleum Bulk Procurement Agency (PBPA) has carried out the tender process, which was joined by three other players of VITOL BAHRAIN (37.630), AUGUSTA ENERGY SA (36.003), and SAHARA ENERGY (34.309).

Recently PBPA, earlier Petroleum Importation Coordinator (PIC), has been incorporated into a government agency to ascertain fuel supply security at the most attractive rates. Tanzanias annual consumption of petroleum products currently stands at around 1.54 million cubic metres.

The petroleum bulk procurement system is mainly intended for creating a petroleum supply system where all participants will have guaranteed as well as cost-effective supply security through procuring from a pool of imports acquired from suppliers, which will chosen via a competitive bidding procedure to exploit the economies of scale.

The PBPA GM Michael Mjinja has revealed that the ADDAXs bid represents the lowest to date, ensuring competitive fuel prices for the users. Commenting on the PICs incorporation into a government agency, the PBPA GM has revealed that the development just reflects conversion of a private entity into public one, which will entail supervision of certain transfer processes.

Mr. Mjinja has added that EWURA will carry on its responsibility as the regulator of the government agency. The PIC was set up through the Petroleum (Bulk Procurement) Regulations of 2011 as modified periodically. Mr. Mjinja has stressed that the system has facilitated in the enhancements of quality of the petroleum products, as well as cup price stabilizations, and taxation improvements, in addition to the reduction in the demurrages at the port.

He has further said that the BPS, along with transparency and boosting revenue for the State exchequer, has also significantly helped in the savings of precious foreign exchanges for the country needed for petroleum product procurements.

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