AfricaPress-Tanzania: PETROLEUM products and liquefied petroleum gas (LPG) domestic market has registered modest growth in the last one year, thanks to a conducive investment environment and regulatory measures by the Energy and Water Utilities Regulatory Authority (Ewura).
As of December 2019, the number of operational petrol stations had grown to 1,596, up from 1,460 stations of the previous year, an equivalent of 9.32 per cent growth, a report released last week by the regulator indicate.
“An increase in the number of petrol stations is attributed to increased demand of petroleum products, growth in economic activities and increased road networks,” says the report.
However, most of the petrol stations are located in urban areas despite the fact that there is high demand of petroleum products in rural areas.
Ewura Director of Petroleum Division Gerald Maganga told the ‘africa-press’ that the regulator had continued encouraging the construction of petrol stations in rural areas to ensure petroleum products were distributed in a reliable and safe manner.
“For this reason, the Petroleum (Retail Operations in Townships and Villages) Rules 2017 will continue being applicable where the requirements for constructing a petrol station in rural areas have been lessened to reduce investment costs while observing health, safety and environment (HSE) requirements,” he said.
According to the report, the security of supply of petroleum products in the country continued being maintained.
On average, Oil Marketing Companies (OMCs) has petroleum stock sufficient to cater for the country’s requirements for more than 20 days, which is above 15 days stipulated in the Petroleum General Regulations.
A total of 6.1 billion litres of petroleum products (diesel, petrol, kerosene, Jet A1 and HFO) were imported in 2019, which is a 7 per cent increase compared to products imported in 2018.
Out of the imported products, 57 per cent was for local consumption while the remaining was transited to neighbouring countries of Zambia, the Democratic Republic of Congo (DRC), Rwanda, Malawi and Burundi.
The volume imported for domestic use in 2019 was 3. 5 billion litres, which is an increase of 8.4 per cent compared to 3. 2 billion litres imported in the previous year.
The increase is attributed mainly to ongoing government projects, including the construction of roads, Standard Gauge Railway and Mwalimu Nyerere Hydro Power.
In addition, fuel was highly needed in the agricultural sector amidst farming activities due to a favourable rainy season.
The LPG business segment continued growing, with increased imports and investments in storage and refilling plants.
In 2019, at least 166,436 metric tonnes of LPG were imported, compared to 142,939 metric tonnes of the same imported in 2018, an equivalent of 16 per cent increase.
About 65 per cent of imports was for the domestic market, while the remaining 35 per cent was transited to neighbouring countries, 70 per cent of which went to Kenya.
