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Tanzania Plan to Increase Competition in Petroleum Supply

tanzania petroleum supply bidding

The Energy and Water Utilities Regulatory Authority (EWURA) plans to change the tendering process of the Bulk Procurement System (BPS) for petroleum importation in Tanzania.

Petroleum products supply in Tanzania is being conducted through a BPS since 2011.

Under the BPS, purchases of petroleum products are made from a pool of imports obtained from suppliers selected through a competitive bidding process.

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The BPS covers the following grades of petroleum products: Automotive Gas Oil (AGO), Unleaded Motor Spirit Premium (MSP), Jet A-1, and Illuminating Kerosene (IK).

EWURA is considering changing the quantities of products to be tendered in a single tender, from total monthly requirements to quantities of one cargo or by discharge point.

This change is expected to increase competition in the market and in turn result in better premiums for supplying petroleum products in Tanzania.

The proposed changes follow received concerns from stakeholders of low competition in tendering for the supply of petroleum products in Tanzania.

This is due to high quantities that need to be supplied by one successful bidder.

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