Monday 27 November 2017

Finally, TBS bows to pressure on bad fuel


The country’s standard watchdog has instead directed that the shipment be denied entry into the market due to lack of required standard specifications.
TBS Director General, Prof Egid Mubofu, issued the alternative directives in his letter to the Petroleum Bulk Procurement Agency (PBPA) acting Executive Director, Engineer Lorivii Long’idu.
The November 24, 2017 letter, which has been copied to other industry regulators and stakeholders, stated: “We wish to receive the written confirmation that the cancellation was put into effect.”
The new development follows PBPA’s vow never to allow the consignment into the market after TBS had earlier given two contradictory opinions on the imported batch.
Earlier, the TBS had written to the petroleum import coordinator on November 22, 2017, stating that the consignment had failed to meet distillation requirements as per local and East African Community Standards.
However, in the same letter the bureau endorsed supply of the fuel into the domestic market, describing the standard shortfall as a ‘marginal failure.’ In the latest letter seen by the ‘Daily News’, Prof Mubofu agrees that allowing the stock for consumption is contrary to the import regulations number nine as announced in the Government Notice number 405 of 2009.
“We (TBS) wish to withdraw the earlier letter because of difficulties that may happen in implementation of regulation number 20 (2) of (petroleum) bulk procurement system as well as shipping and supply contracts,” the TBS boss wrote in the latest correspondence.
The contentious consignment was sampled at Dar es Salaam port outer anchorage on November 20 and the test results submitted to PBPA and other industry stakeholders on November 21, 2017.
Following the disclosure of the imported inferior fuel by the ‘Daily News’ last week, Engineer Long’idu vowed never to accept the shipment. The multibillion shillings consignment was imported through the Bulk Procurement System (BPS) using an oil tanker, MT Alpine Meadow.
According to TBS, the samples of the batch failed to meet the distillation requirements as per local standards; TZS 672:2012 and East African Standards; EAS 158:2012. “As per laboratory tests that TBS conducted and submitted the results to us, we will not receive the consignment because it’s out of specifications,” Engineer Long’idu told the ‘Daily News’ last week.
He added, “It is surprising that TBS is giving us two contradictory opinions on the same issue... since the standard watchdog has confirmed that the fuel is out of specifications, there is no way we can allow it into the market.”
According to the earlier letter by Prof Mubofu, the bureau conducted the laboratory tests, and reconfirmed the tests, concluding that the imports missed the standard specifications. Engineer Long’idu maintained that the fuel importer, Trafigura Pte Limited, has to ship back the product to the refineries where it can be blended to meet the required standards.
The Energy and Water Utilities Regulatory Authority (EWURA) shared similaropinion, insisting that the Petroleum Act of 2015 and its regulations must be observed for any imported fuel.
“Regulations and procedures are clear; all petroleum products imported in the country must adhere to the requisite quality standards,” EWURA acting Director of Petroleum Gerald Maganga was quoted as saying.
“We were clear to the importation coordinator that regulations on bulk procurement for petroleum products must be adhered to and inferior products should not be allowed in the market,” the official remarked.
The consignment was imported by Trafigura Pte Ltd, one of the three companies, which won the tender to import fuel through the BPS for November. Other companies are Sahara Group and Audax Resources.
source: Daily News

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