Friday, December 06, 2019
   
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Following concerns over the introduction of bulk procurement system for importation of Liquefied Petroleum Gas (LPG), President John Magufuli has urged the Ministry of Energy to discuss with investors and agree on a win -win arrangement for importation of the commodity, TPJ has learnt.

“The Ministry and investors must sit down and resolve all sticky issues about bulk procurement of LPG,” stated Dr. Magufuli, when commissioning the LPG storage and filling facility owned by Taifa Gas Limited at Kigamboni in Dar es Salaam recently.

President Magufuli was responding to a request by Taifa Gas Managing Director Mr. Hamisi Ramadhan for critical review of introduction of the bulk procurement system in the country, which he said could curtail competition and slow down growth of the nascent sector.

Mr. Ramadhan said the LPG sub sector could prosper if importation and pricing remained liberalized and the Government concentrated in ensuring strict control on quality, technical and safety issues.

He added that relaxed importation and pricing arrangements would encourage innovation and investment in the sector, hence enhance competition among players resulting to quality and low price of the commodity to the advantage of consumers both in rural and urban areas.

According to him, bulk procurement system is effective in importation of petroleum because of the nature of the sector and its impact to the economy as well as the fact that it is fully developed unlike the LPG sub sector.

The Ministry of Energy had announced more than a year ago that it opted to use bulk procurement system for the importation of liquefied petroleum gas with a view to ensure reliable supply and facilitate price regulation, taking into consideration the fact that over the past five years Tanzania had witnessed a steady increase in LPG consumption.

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