Tanzania Daily News (Dar es Salaam)

5 December 2012

Tanzania: Augusta to Supply Fuel This Month

THE Petroleum Importation Coordination (PIC) suspended Addax Energy SA for failure to comply with Bulk Procurement System (BPS) regulations while Augusta Energy SA emerged victorious in a pre-qualification process to supply fuel for the month of January 2013.

Augusta Energy SA beat other close bidders, Gunvor and Vitol Oil SA in a highly competitive tender process after offering the lowest price of 71.46 US dollars per weighted average premium against 71.52 US dollars and 72.83 US dollars respectively.

Apart from Addax Energy SA that was suspended from taking part in the tender number seven (PIC/2013/G-P/07), two firms including Mogas International Ltd and Gunvor were disqualified while TOTSA apologized for withdrawing from the bidding process.

Through the tender, Augusta Energy SA shall deliver 202,700 metric tonnes of diesel, 85,700 metric tonnes of petrol, 23,900 metric tonnes of JET A-1 fuel and 6,050 metric tonnes of Kerosene to meet the demand for the month of January.

The Geneva-based oil multinational firm, Augusta Energy SA, had previously won three tenders to import oil through BPS. The company's representative, Mr Orlando D'Costa, said he was happy for the comeback to the business after winning and delivering efficiently the first three tenders.

"We will adhere to the PIC regulations especially those pertaining to security of supply, quality and competitive price," he said. The PIC General Manager, Mr Michael Mjinja, said Addax Energy SA was suspended after some of the fuel vessels intended to supply tender number four and five delayed for some days thus causing not only inconveniences to the process but breached the BPS regulations.

Mr Mjinja said Addax has been summoned to explain why it failed to comply with the BPS regulations to be followed by penalties which are about 0.5 US dollars per metric tonne for the fuel vessels which delayed berthing. The firm will be allowed to take part in the next tender if it pays the penalties.

"If a fuel vessel delays berthing for seven days, regulations empower PIC to refute the oil cargo," he said, adding that, "Tender winners and other suppliers should adhere to the rules and regulations otherwise PIC will not hesitate to penalize them."

He said the functioning of the Single Point Mooring (SPM) has increased significantly efficiencies in off-loading of fuel thus resolving problems of congestions of oil vessels at the port which occurred a few months ago. He said demand for fuel in the country is volatile and depends on the period of the year.

For example, during harvest seasons, demand for fuel rises due to increased movement of business people from areas with high supply of agriculture products to the market places. The Addax Energy SA representative, Mr Julien Seddiki, said his company, which won the three previous tenders number 4, 5 and 6, will resolve all the issues which led to the suspension from participating in tender number seven.

The Energy and Water Utilities Regulatory Authority (EWURA) Director, Regulatory Economics, Mr Felix Ngamlagosi, urged all stakeholders in fuel importations to adhere to BPS regulations to avoid unnecessary inconveniences which could impact negatively into the economy.

Meanwhile, EWURA published fuel prices for the month of December where petrol and diesel increased by 70/-, equivalent to 3.4 per cent and 10/- or 0.53 per cent, respectively. Kerosene price has decreased by 3/-, a 0.1 per cent increase.

The cap prices in Dar es Salaam Region for petrol will be 2,119/- per litre, diesel 1,999/- and kerosene 2,023/-. The highest prices will be registered in Uvinza (Lugufu) -- Kigoma Region where petrol, diesel and kerosene will be sold 2,362/-, 2,242/- and 2,266/- respectively.

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