Tanzania: Swiss firm wins lucrative tender to supply petroleum products


A Swiss Oil Marketing Company, Addax Energy has won the tender to supply petroleum products in Tanzania under the country’s bulk procurement system (BPS).

Held Thursday in Dar es Salaam, the tender exercise was the first of its kind since the establishment of the State-run Petroleum Bulk Procurement Agency (PBPC), the new body replacing Petroleum Importation Coordinator (PIC).
PBPC announced Thursday its first winning bidder to supply petroleum products for the month of March after tabling the lowest Weighted Average Premium per Metric Ton of $ 32.349.

The development is good news to motorists in the country, according to PBPA Executive Director Michael Mjinja.
“Our expectation is to ensure the public expectation over declining price of crude oil at the international market is translated to domestic customers,” he said.

The new deal is likely to push down pump fuel prices further.

During the bidding process was conducted under procedures specified in the Petroleum Act Cap 392, the Petroleum (Bulk Procurement Regulation, 2011) and by International Competitive Bidding (ICB) principles.

Announcing the winner, the PBPA Board Chairman, Mansoor Shanif Hiransaid said Addax had presented the average pricing of gasoil (diesel) at $32.58/mt, motor spirit (petrol) at $29.43/mt and jet oil A1/1K at $44.19.
Vitol Bahrain the other bidding company offered $37.630/MT and became the first to be dropped followed by Augusta Energy SA with $36.003/MT and Geniva and Sahara Energy DMCC with its $34.309/MT.

Addax Energy SA emerged winner with $32.349 for a an average premium.

Orlando d’Costa Augusta Energy SA country representative admitted the tender was very competitive but made it clear his firm will continue competing for the upcoming bids.

Addax Energy SA country representative Anand Natarajan, said they arrived at the lowest pricing based on the decline in the prices for crude oil at the international market as well as the reduction in freight service costs.