Tanzania: No Fuel Shortage, Nation Assured

Posted on : Wednesday , 1st July 2015

The government has allayed fears on possible fuel shortage while warning suppliers against any move to hoard the product. Defaulters risk indefinite ban and revocation of their licences to operate.

The warning was relayed here by the Deputy Minister for Energy and Minerals, Mr Charles Mwijage, following an intervention by the Deputy Speaker of the National Assembly, Mr Job Ndugai, who had asked the ministry to respond to speculations that the country will face a serious shortage of fuel (diesel and petrol) in the course of this week.

Mr Ndugai noted that for the past few days, messages have been circulating, especially in Dar es Salaam, that there will be a big shortage of fuel in the city within the next few days. He wanted the government to provide a statement over the issue.

However, Mr Mwijage strongly dispelled such rumours, saying that there is sufficient stock in the country at present.

The deputy minister advised the public to ignore the message being circulated, assuring all stakeholders that there cannot be such shortage as the law gives the Energy Minister powers to allow reserved oil to be sold in case of any shortfall.

"I want to assure the public that the situation cannot happen in the country because the data that we have shows there is enough oil (fuel) reserves in Dar es Salaam," Mr Mwijage told the House.

The deputy minister said he has also received such a message, adding that the government has begun tracing its source.

According to Mr Mwijage, the ministry has begun to inspect all fuel tanks at petrol stations to ensure that the owners of stations did not hoard fuel for their selfish ends.

He said they would revoke the licence of any station(s), which will hide fuel, thus inconveniencing the public, because the law gives powers to his ministry and Energy and Water Utilities Regulatory Authority (EWURA) to do so. The government and EWURA will make sure that the public continues to get fuel.

EWURA Communications and Public Relations Manager Titus Kaguo told the 'Daily News' yesterday that there was enough fuel in the depots while tankers were transporting fuel from the depots to filling stations.

He stated that the regulatory authority would not let any fuel importer to hoard the current stock until the new budget starts (July 1, 2015), stressing that the move is against the law.

Mr Kaguo assured the public that if a handful of filling stations in Dar es Salaam; from more than 280 filling stations in the city, do not have fuel, should not be cause for alarm.

"This has been the trend. Every time we are about to start a new budget... we hear these stories of scarcity of fuel but this is not true at all, "he explained.

Industrial sources have said that due to high taxes imposed on fuel in the 2015/16 budget, fuel suppliers might hoard the product until July 1 when prices will go up.

The source noted that the increase in taxes on petroleum products in the 2015/16 budget will fuel increase in prices of petroleum products, enticing importers to hoard the product until the beginning of new budget.

In 2015/16 budget, the government has increased 100/- for a litre of petrol and diesel while increasing 150/- for each litre of kerosene.