HEADLINES:
 
Search
Monday, 15 August 2011
 
Burundi Kenya Rwanda Tanzania Uganda
 
Tz truck association break Burundi fuel adulteration racket
You are here: Home | News
 

JAMES MWAKISYALA


DAR ES SALAAM, TANZANIA- In startling revelations in Dar es Salaam last week, a representative of the Tanzania Truck Owners Association (TATOA), Zacharia Hans Poppe said recent spot checks on fuel imported into Burundi impounded 85 fuel tankers with adulterated diesel.

Poppe told a Parliamentary Committee for Infrastructure Development that the practice wasn't only bad for fuel users, but was a huge leakage of Government revenue estimated at Tshs 33 billion (US$22 million) every month which translates into $264 m annually.

This loss could increase extensively if more millions of litres that are off-loaded, tax free, while in transit to neighbouring countries were properly taxed. Transit fuels and goods are by law untaxed until they reach their final destinations.

The TATOA official said unscrupulous businessmen and truck drivers collude by mixing diesel with paraffin. Citing an example, the official said a truck driver can sell as much as 4,500 litres of diesel and replace it with an equal volume of paraffin because the latter is sold cheaply in Tanzania.

The government has purposely reduced tax on paraffin because it forms the main source of lighting for the majority of the 45 million Tanzanians, especially in rural areas and urban slums.

The truck drivers are said to earn more than Tshs 4 million ($2,665) which they pocket and claim to spend some of it to bribe officials along the way.

Most of the transit fuel cargoes find a ready market along the many petrol stations that dot highways from Dar es Salaam to the borders with neighbouring countries of Burundi, Rwanda, eastern Democratic Republic of Congo (DRC) and Uganda.

Acting chairman of the Parliamentary Committee Godfrey Zambi noted that the matter was serious and needed an urgent solution to contain the crime because it was possible to curb the practice.

The adulteration revelation is not new to Tanzanian authorities as only recently the Energy and Water Utilities Regulatory Authority (EWURA) closed over 30 petrol stations in Kilimanjaro region alone.

Tanzania mainland has 21 regions.

However, the wealth of oil marketers seems to overwhelm the Government institutions because they continue to violate safety and standards at will.

Observers said authorities in the landlocked countries where the adulterated fuel is destined, must maintain strict inspection of fuel that passes through Tanzania to curb the crime from resulting in devastation to their transport facilities that use diesel.

There are varying prices of fuel throughout the East African region.

 
 
on EAC Issues

 
 
 
 
 
 
 
 

Name


E-mail (Will not appear online)


Comment


Please enter the text you see in the image CORRECTLY.

Ktc2aabV


Note: your post will not be visible until approved by the Editor.
 
 
 
 
 
 
Copyright © 2007 - 2011. The East African Business Week ®. All Rights Reserved. Advertising | Privacy Policy | Contact Us