The Director of Elections at the Independent National Electoral Commission (INEC), Mr Ramadhan Kailima, has commended Tanzania’s Bulk Petroleum Procurement System (BPS), describing it as a transparent and efficient model that has strengthened government revenue collection while ensuring a stable supply of fuel across the country.
His remarks came during a visit to the Petroleum Bulk Procurement Agency (PBPA) pavilion at the ongoing Public Service Week exhibitions at Chinangali Grounds in Dodoma on Thursday.
The system, which centralises the importation of petroleum products, has been credited with reducing costs, enhancing accountability and improving oversight of one of the country’s most critical economic sectors.
After receiving a briefing on the system’s operations, Mr Kailima said its emphasis on transparency and competitive bidding had played a significant role in improving efficiency within the fuel supply chain.
“The system has been designed in a way that promotes transparency and fair competition, while also helping the Government improve revenue collection and guarantee the availability of fuel,” he said.
Officials from PBPA explained that competition under the bulk procurement arrangement is largely determined by the transportation cost component, commonly known as the premium.
PBPA Petroleum Inspector, Mr Issa Mwitazy, said suppliers compete by submitting bids for the transportation of petrol, diesel and kerosene, with contracts awarded to firms offering the lowest and most competitive rates.
According to him, the approach has enabled Tanzania to maintain adequate fuel stocks while providing authorities with accurate data on imported volumes, strengthening the Government’s ability to collect revenues generated from petroleum trade.
“The system has helped ensure that sufficient fuel is available in the country at all times while also providing reliable information that supports revenue collection and sector planning,” Mr Mwitazy said.
He added that fuel importation contracts are signed well before consignments arrive at Tanzanian ports, allowing the Government to forecast revenues more accurately and improve fiscal planning.
The success of the system has also elevated Tanzania’s position as a regional petroleum logistics hub. Countries including Malawi, Rwanda, Zambia and the Democratic Republic of Congo now utilise Tanzania’s bulk procurement framework to facilitate their fuel imports.
The growing regional confidence in the arrangement reflects its reputation for efficiency, transparency and reliability, reinforcing Tanzania’s role in supporting energy security beyond its borders.
Mr Kailima’s visit formed part of activities during Public Service Week, an annual event that provides government institutions with an opportunity to showcase reforms, innovations and achievements aimed at improving service delivery and contributing to national development.
