Tanzania has made major strides in streamlining the importation of petroleum products over the past four years, with key structural and technological reforms by the Petroleum Bulk Procurement Agency (PBPA) delivering tangible results.
PBPA Executive Director Erasto Simon unveiled the progress on August 7, 2025, during a briefing with editors and journalists in Dar es Salaam.
He attributed the gains to policy direction under President Samia Suluhu Hassan’s administration, which has emphasized energy security, transparency, and private sector participation.
“Tanzania has not only strengthened its fuel supply chain but also reduced operational costs and inefficiencies across the board,” Simon told the media.
The volume of petroleum products imported through the Bulk Procurement System (BPS) rose from 5.8 million tonnes in 2021 to 6.37 million tonnes in 2024, a 9.6 percent increase.
PBPA expects the figure to reach 7.09 million tonnes by the end of 2025, marking an 11.4 percent year-on-year growth.
In parallel, the number of participating Oil Marketing Companies (OMCs) more than doubled—from 33 in 2021 to 73 in 2025, a 121 percent jump.
PBPA also registered 24 prequalified suppliers during this period, deepening competition and improving procurement quality.
The number of oil import tenders rose from 109 in 2021 to 118 projected for 2025, while contracts executed reached 589 over the four-year period. PBPA attributes this to more robust planning and oversight of procurement cycles.
The agency’s collaboration with the Tanzania Ports Authority has also significantly reduced ship waiting times.
By introducing a coordinated vessel scheduling system, PBPA helped the country save an estimated $11.5 million (TZS 29.95 billion) annually in demurrage charges.
These savings have reduced pressure on foreign reserves and boosted port efficiency.
To curb fuel losses and improve monitoring, PBPA installed flowmeters and SCADA systems at storage facilities.
The digital upgrades have helped the government save TZS 56.4 billion annually, or over TZS 225 billion in total across four years, by minimizing discrepancies in fuel quantities received at depots.
The agency began tracking fuel imports outside the BPS system from July 2024, giving it full visibility over all fuel shipments entering the country.
This expansion of oversight ensures better data integrity and policy decision-making.
Meanwhile, the number of fuel storage depots increased from 22 in 2021 to 24 in 2025. National fuel storage capacity grew by 34 percent, rising from 1.29 billion liters to 1.72 billion liters—driven largely by investments in Dar es Salaam.
Despite disruptions from global events such as the COVID-19 pandemic and wars in Ukraine and the Middle East, Tanzania maintained consistent fuel availability.
PBPA credits this resilience to proactive risk management, diversified sourcing, and strong government leadership.
To support these operations, PBPA recruited 68 new staff in various professional roles. The expanded workforce has helped the agency scale up operations and ensure compliance across its systems.
Tanzania Editors Forum (TEF) Chairman, Deudatus Balile, praised the agency for its transparency.
“The meeting was very beneficial to editors as it provided them with a deeper understanding, enabling them to better inform the public with detailed and important information,” he said.
Established in 2015 under the Government Agencies Act (Chapter 245), PBPA began operations in 2016 with a mandate to manage petroleum imports through competitive bulk procurement. The agency operates under the Ministry of Energy.
As the government positions Tanzania as a strategic energy and logistics hub in the region, analysts say PBPA’s model of centralized, transparent procurement could serve as a blueprint for other sectors.