Tanzania allays fears on fuel supply

DODOMA: THE government has reassured the public that Tanzania has sufficient fuel supplies despite global disruptions caused by the ongoing Middle East crisis.

Minister for Energy, Mr Deogratius Ndejembi gave the assurance yesterday in Dodoma saying that the government is taking all necessary measures to maintain a steady supply and warning against fuel hoarding.

During a meeting with institutions under his ministry, Mr Ndejembi directed Energy and Water Utilities Regulatory Authority (EWURA), to inspect fuel storage facilities and ensure that no trader withholds petroleum products in anticipation of price increases.

He also ordered the formation of a special task force comprising experts from EWURA, Petroleum Bulk Procurement Agency (PBPA), Tanzania Petroleum Development Corporation (TPDC) and security agencies to closely monitor fuel imports and ensure that all shipments reach Tanzania on schedule.

“This team will track all fuel shipments to ensure they arrive on time. The global fuel market is unstable, and some traders may be tempted to divert supplies for higher profits. We will not tolerate any breach of contracts,” he warned.

Mr Ndejembi stressed that all fuel held in depots must be released to the market promptly and instructed PBPA to ensure the timely delivery of contracted fuel, while EWURA monitors daily inspections.

Mr Ndejembi said the ministry, through its agencies, continues to closely monitor global fuel prices and devise strategies to maintain stability in the domestic market.

“Global fuel availability has become very challenging, but through government strategies and directives from President Samia Suluhu Hassan, we have ensured a steady supply at all times,” he said.

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“Ensure fuel is always available. I do not expect to hear claims of shortages while fuel remains in storage facilities. Work closely with the Tanzania Revenue Authority to ensure fuel that has completed tax procedures is released promptly,” he directed EWURA.

The minister also tasked PBPA with ensuring timely delivery of contracted fuel, stressing the need for close tracking of shipments.

“We must actively track shipments, know where each vessel is and when it will arrive. Globally, some ships are being diverted to markets facing shortages due to higher profits. This must not leave us without fuel,” he emphasised.

He further ordered the formation of a joint team comprising experts from PBPA, EWURA, TPDC and security agencies to track vessels and ensure contracted fuel reaches Tanzania as scheduled.

“I will not accept any company failing to honour supply contracts and putting the country at risk of shortages,” he stressed.

Mr Ndejembi directed TPDC to ensure that procured fuel is shipped and delivered as planned, while calling for daily inspections by EWURA.

Speaking at the event, Permanent Secretary for Energy (Petroleum), Dr James Mataragio, said the country currently has adequate fuel supplies, supported by early procurement strategies.

“Early procurement contracts have enabled us to secure fuel at favourable prices compared to current global rates, which will benefit consumers,” he said.

EWURA Director General, Dr James Andilile said the domestic fuel market remains stable, with the authority overseeing daily distribution across six zones.

“The market is stable, supply is smooth and no major challenges have emerged,” he said.

PBPA Chief Executive Officer, Erasto Simon, said the country has sufficient fuel reserves, including 230 million litres of petrol (enough for 38 days), 180 million litres of diesel (28 days) and 31 million litres of jet fuel (47 days).

He added that additional supplies in transit include 245 million litres of petrol, 208 million litres of diesel and 23 million litres of jet fuel.

“In total, combining available and incoming supplies, Tanzania will have 474 million litres of petrol (78 days), 392 million litres of diesel (50 days), and 55 million litres of jet fuel (91 days),” he said.

TPDC Managing Director, Mussa Mohammed Makame, said the corporation has already secured fuel supply contracts for May through July, ensuring continued stability.

“With the current stock, we are covered through March and April, while part of May is already secured. Contracts for May, June and July were signed early, ensuring long-term supply security,” he said.