Petroleum

Petroleum
Petroleum

General Information

The Petroleum Act, Cap 392 and the EWURA Act Cap 414 mandates the Authority to regulate the downstream petroleum sub-sector in Tanzania mainland. This broad role includes regulation of importation, unloading, transportation, storage, transforming, and selling of petroleum products in the country. Under these Acts EWURA is mandated to undertake technical, economic and safety regulatory functions in the downstream petroleum supply chain.   

Since liberalization of petroleum sector in 2000, the Authority’s role has been that of creating a level playing field and protecting both investors and consumers. Section 40 of the EWURA Act Cap 414 allows the Authority, in consultation with the Minister responsible for petroleum affairs, to make Rules in respect of all matters considered necessary or desirable to give effect to the Act. In this regard, the Authority has put in place several Rules for regulating the petroleum downstream sub-sector while adhering to good governance, transparency and fairness. These Rules are intended to facilitate proper discharge of the Authority’s regulatory roles.

In accordance with Section 8 of the Petroleum Act, 2008 all downstream petroleum sector operators are obliged to apply and obtain licenses from the Authority. Furthermore, Section 13 of the Petroleum Act, Cap 392 requires a person intending to construct a petroleum installation or petroleum carriage facility to apply to the Authority for a construction approval.

Pursuant to Section 33 of the Petroleum Act, Cap 392 importation of petroleum products has to be conducted through efficient procurement mechanism. As such Bulk Procurement regulations were approved by the Minister responsible for Petroleum Affairs in June 2011 and revised version in 2013. These regulations provide for establishment of a Petroleum Importation Coordinator (PIC) to manage and coordinate importation of petroleum products. Currently petroleum products that are imported through Bulk Procurement System (BPS) are petrol, diesel, Jet- A1, Kerosene, LPG and HFO.

The petroleum market in Tanzania is considered to be very competitive with 88 licensed OMCs, out of which 13 OMCs have been active participants in the market for the past three consecutive years, 2012 to 2014. It is the obligation of all OMCs to report to the Authority their sales data.

The Authority continued to publish petroleum products prices as per the requirement of the Petroleum Products Pricing Setting Rules that started in the year 2009. The rules have been amended several times in order to accommodate different changes in the industry.

List of regulated licensee

As at 31st December 2014, the Authority had issued a total of 1,098 licenses

Licence Type Licence Issued
Petroleum Wholesale Licence 

88

Petroleum Retail Licence

990

Consumer Installation Licence

2

Lubricant Licence

8

LPG Licence

6

Bunkering Licence

2

Petroleum Importation Coordinator Licence

1

Storage Licence

1

Total

1,098