24-hour camp at major depots: TRA seeks fuel duties upfront

Photo: File

Yusuph Juma Mwenda, the TRA commissioner general

By Getrude Mbago ,

THE Tanzania Revenue Authority (TRA) has introduced a tax-upfront strategy where domestic fuel duties must be settled before the product is cleared for sale.

Yusuph Juma Mwenda, the TRA commissioner general, made this affirmation when inspecting major fuel storage depots, asserting that this effort will be coupled with a rigorous tracking system to prevent transit fuel from being illegally diverted back into the local market.

He confirmed the transition in fuel levy collection schedules following an extensive inspection of major storage facilities, including Camel Oil, Mount Meru, and Moil Energies at the weekend, while TRA and the Energy ministry work on a coordinated strategy to safeguard the three-month fuel buffer stock to withstand possible supply challenges or oil rerouting due to tensions in the Middle East. 

TRA has transitioned to a 24-hour service model at major fuel depots to accelerate distribution and eliminate artificial bottlenecks that have led to recent reports of localized shortages.

He rejected claims of a national fuel deficit, characterizing recent disruptions as issues of distribution and compliance rather than a lack of actual reserves. 

Dr James Mataragio, the permanent secretary, said in a press conference that the country holds 563.6m liters of petroleum products either in storage, under contract or in transit. 

This massive volume is calculated to sustain the country for 91 days, effectively covering national needs until early July, he said, elaborating that petrol stocks are sufficient for 61 days, while combined diesel reserves and contracted shipments can sustain the country for up to 64 days, with jet fuel supplies remaining equally stable.

This proactive stockpiling is a direct response to global market volatility triggered by ongoing conflicts involving the United States and Israel against Iran. With global oil prices surging from around $60 per barrel in February to approximately $114 currently, the government has directed the Tanzania Petroleum Development Corporation (TPDC) to undertake emergency bulk procurement. 

By shifting away from smaller, fragmented consignments to large-volume, long-term contracts, the government can leverage greater bargaining power to secure more competitive prices and cushion citizens against the full impact of global price hikes, he said.

The transition to a more transparent and efficient market has received strong backing from private sector stakeholders. 

Depot managers at Mount Meru and Moil Energies noted that the TRA’s new 24-hour operations and stricter tracking protocols have significantly reduced the leakage of fuel intended for export back into the domestic market. 

Furthermore, companies like Camel Oil have implemented internal quotas based on historical data to ensure that a few large-scale traders do not hoard supplies at the expense of smaller retailers.

The government cautioned against economic sabotage by traders hoarding fuel to exploit rising global prices. The state would not tolerate the creation of artificial shortages and any individual caught hiding fuel to manipulate the market would face swift prosecution.

With 24-hour monitoring and a robust strategic reserve, the country is positioning itself to navigate the current global energy crisis with resilience and stability, officials insist.