Tanzania: Govt to Adopt Bulk Procurement System in LPG Importation
Posted on :Wednesday , 20th July 2016
Importation of Liquid Petroleum Gas (LPG) in the country has changed, with the government adopting the bulk procurement system effective September, this year.
Deputy Permanent Secretary in the Ministry of Energy and Minerals Juliana Pallangyo announced the changes in Dar es Salaam yesterday, inviting all interested parties to participate in the supply of LPG.
Opening the two-day annual Africa LPG summit for 2016, Dr Pallangyo noted that the importation of gas under the new system is expected to succeed under the Petroleum and Bulk Procurement Agency (PBPA).
In 2013, the government established PBPA, purposely to ease importation of petroleum products and promote efficiency in the sector. With bulk procurement, Dr Pallangyo said it would be easier to regulate LPG prices and ensure reliable supply in the country.
"The government is looking forward to change the system effectively September this year...under the bulk procurement system, it will be easier for local dealers to get LPG from a reliable supplier," she explained.
The deputy PS noted that the new system would also enable the government through its regulatory bodies to regulate LPG prices and ensure more Tanzanians opt to the use of LPG instead of firewood and charcoal, which remain the primary source of energy among majority citizens.
She said the LPG was environmental friendly, noting that the government and other stakeholders were doing everything in their powers to promote LPG and control deforestation and environmental degradation in general.
According to Dr Pallangyo, the link between energy and development aspiration is pivotal, arguing that LPG has an increasingly critical role in provision of safe, affordable, convenient and cleaner fuel for the future of Tanzania and the region at large. She attributed the excessive use of charcoal, firewood and kerosene to limited supply of modern energy in most of Sub-Saharan countries, including Tanzania.
"Sub-Sahara and developing Asia account for a whopping 95 percent of the World's 1.3 billion people without clean cooking fuel," the deputy PS noted. According to Dr Pallangyo, LPG is considered as the key solution to the region's electricity and cooking fuel shortage.
However, Dr Pallangyo said many Tanzanians perceive LPG as more expensive compared to electricity and kerosene, which are traditional alternative fuel. "There is also a question of LPG availability as it is mostly retailed at large shopping centres and petrol stations but kerosene is available in many areas and in small quantities," she said.
On the LPG trend in the country, Dr Pallangyo said the country has witnessed a steady increase of supply and consumption. She said over the past five years, the average import volume has increased from 2,225 metric tonnes in 2010/2011 to 5,762 metric tonnes in 2014/2015.
She added that LPG had clear benefits over traditional biofuels in terms of impact on health as over four million people die globally from indoor pollution every year from cooking with solid fuels.
Acting Executive Director for PBPA Michael Mjinja said the summit had brought players in the LPG industry from different parts of the World to discuss issues that will bring positive changes in the sector.
The summit, which had been opened along with exhibition on global practices and technological development in the supply chain of LPG, will enable participants and in particular Tanzanians to share skills and ideas for improving the sector.
Oryx energies' Retail Sales Manager (inland), Mr Mohamed Mohamed told the 'Daily News' that as a supplying company, they were happy with the government's move to change the LPG importation system.
He said the new system will boost the business and enable them to link with reliable suppliers. According to Mr Mohamed, so far there are only four local companies that import LPG.
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