Plans afoot to up number of aviation fuel suppliers in Tanzania
Works, Transport and Communications minister Isack Kamwelwe
What you need to know:
- Tanzania wants to increase aviation fuel suppliers to add competition and reduce its cost. The move is seen as necessary given the fact that at the moment only the mid- and downstream oil company Puma Energy Tanzania provides the service.
Arusha. The government is planning to increase the number of aviation oil suppliers in the country in an effort to reduce the cost of the product.
Works, Transport and Communications minister Isack Kamwelwe unveiled the plan on Thursday February 21, 2019 during a business forum in Arusha, saying that the step was necessary as only the mid and downstream oil company Puma Energy Tanzania is the sole supplier.
“We will need at least five other suppliers in the country in order to increase competition between suppliers,” said Mr Kamwelwe, who was responding to a question posed by Jackline Mkindi from Tanzania Horticultural Association (TAHA).
Mr Kamwelwe blamed the absence of cargo aircraft, which can conduct foreign trips from Tanzania, on the shortage of suppliers, something, which he said makes the cost of the much-needed lubricant too expensive to afford.
“The cost of aviation and aircraft oil in the country is far more expensive than in any other part of Africa. We are obliged to send our cargos to [Kenya’s] Jomo Kenyatta International Airport where the cost is comparatively cheap. This challenge threatens the opportunities available in the country,” warned Mr Kamwelwe.
