Addax Energy SA wins fuel supply tender for March

An oil rig worker at Ngamia 3 in Turkana County. PHOTO | FILE 

ANTHONY TAMBWE

ADDAX Energy SA yesterday won the tender to supply petroleum products in the country for March, beating other competitors after presenting the lowest bid.

The oil company offered the lowest weighted average premium at 32.349, the lowest premium ever recorded, which was followed by SAHARA Energy DMCC which bid at 34.309. It placed GASOIL at premium of 32.580, motor spirit at 29.430, JET A-1 at 44.190 and IK at 44.190.

The exercise was conducted by the newly established Petroleum Bulk Procurement Agency (PBPA) and saw the participation of three other bidders, namely VITOL BAHRAIN (37.630), AUGUSTA ENERGY SA (36.003), and SAHARA ENERGY (34.309).

PBPA which was formerly known as the Petroleum Importation Coordinator (PIC) was recently incorporated into a government agency with the aim of ensuring security of supply at the most competitive prices.

Tanzania consumes about 1.54 million cubic metres per annum of petroleum products. The main objective of the petroleum bulk procurement system is to establish a petroleum supply system in which all players will be assured of security of supply at the most competitive prices possible by purchasing from a pool of imports obtained from suppliers selected through a competitive bidding process to take the advantage of the economies of scale.

The PBPA General Manager, Michael Mjinja, said that so far the ADDAX bid was the lowest ever recorded, saying that this will ensure that consumers enjoy competitive fuel prices.

On PIC being incorporated into a government agency, Mr Mjinja said that the move is just a transformation from private entity into public that will involve some transferring procedures to be observed, adding that EWURA will continue with its duty as the regulator of the government agency.

The Petroleum Importation Coordinator was established by the Petroleum (Bulk Procurement) Regulations of 2011 as amended from time to time.

Mr Mjinja said the system has helped in improving quality of petroleum products, stabilized cup prices, improved taxation and has helped to reduce demurrages at the port, adding that apart from transparency and increasing government revenue, the BPS has also assisted the country to save foreign currency used to purchase petroleum products.