The Petroleum Importation Coordinator Limited (PICL),whose main role is to coordinate the importation of petroleum products in the country since 2012 will no longer coordinate such services with effect from January 2016.
The PICL is a non-profit limited company with no share capital guaranteed by Oil Marketing Companies (OMCs). It was established by the Petroleum ( Bulk Procurement) Regulations, GN NO. 164 of 2011 as amended by GN NO 59 of 2013, under the Petroleum Act, CAP 392.
The company which is owned by oil marketing companies had been playing a pivotal role in the bulk procurement system (BPS) of petroleum products since 2012.
The Energy and Water Utilities Regulatory Authority (Ewura), Director General, Felix Ngamlagosi said in Dar es Salaam last Friday that effective next month, the BPS will be under the Petroleum Bulk Procurement Agency (PBPA), which will replace PICL.
“The Minister responsible for Energy and Minerals has already approved regulations to that effect,” Ngamlagosi told The Guardian. He however pointed out that oil marketing companies will continue playing a key role in the new set up as they are strategic stakeholders.
Ngamlagosi said PBPA shall ensure its impartiality in tender awarding as its board and ownership are now directly under the Ministry of Energy and Minerals and also oil marketing companies representatives as its members.
Ewura, which is credited with establishment of the BPS competitive tendering for petroleum products and has brought sanity to the industry, will remain a regulatory body with oversight of the industry's downstream prices.
Apart from bringing sanity to an industry characterised by chaotic pump prices prior to 2012, Ewura has also assisted to boost government revenue as it is impossible for companies to cheat.
Meanwhile, Geneva based Augusta Energy SA has won BPS tender 41 that will see the company supply 199,117 metric tonnes (MT)of gasoil, 116,717MT of diesel, 21,900MT of Jet A-1 fuel and 1,400MT of kerosene in January 2016.
The PIC General Manager, Michael Mjinja, told The Guardian yesterday that August Energy SA won the competitive international tender against three other bidders, Sahara Energy DMCC, Addax Energy SA and Enoc Africa Limited.
“The company won the tender because they presented the lowest bidding premium but also met other tender conditions,” said Mjinja. He said Augusta Energy has also presented the lowest tender at US$ 33.573 per MT compared to Sahara, which offered US$ 35.245/MT and Enoc which offered US$ 44.177/MT.
Augusta’s latest weighted average premium also represents an all-time lowest rate since BPS was introduced. Statistics and records have shown that Augusta also won the 1st BPS tender under PICL in January 2012 and now will again be the first company to supply the BPS under the PBPA next January.
The government, oil marketing companies and the public have commended PICL for a good job which ensured that hiked pump prices were checked against, government revenue increased while quality of the commodity also improved.
Under BPS, supply of petroleum products, including during last general elections period was smooth due to proper planning.
SOURCE: THE GUARDIAN
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