Downstream Petroleum Sub Sector Performance Review Report

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Downstream Petroleum Sub Sector Performance Review Report DOWNSTREAM PETROLEUM SUB SECTOR PERFORMANCE REVIEW REPORT May, 2015 Energy and Water Utilities Regulatory Authority 6th Floor, Harbour View Towers, Samora Avenue / Mission Street, P.O. Box 72175, Dar es Salaam, Tanzania Tel: +255 (0) 22 212 3850/3/4, Fax: +255 (0)22 212 3180, E-mail: [email protected] Website: www.ewura.go.tz Downstream Petroleum Subsector Performance Review Report 2013/14 TABLE OF CONTENTS FOREWORD ................................................................................................................................................................................................................................vi ABBREVIATIONS AND ACRONYMS ..............................................................................................................................................................vii EXECUTIVE SUMMARY ................................................................................................................................................................................................ix 1 INTRODUCTION ................................................................................................................................... 1 1.1 Background .......................................................................................................................................................................................................1 1.2 Downstream Petroleum Industry ......................................................................................................................................................1 1.3 The Role of EWURA in the Downstream Petroleum Sub-Sector ........................................................................2 1.3.1 Regulatory Instruments and Standards.......................................................................................................................2 2 LICENSING ACTIVITIES ..................................................................................................................... 4 2.1 Introduction ........................................................................................................................................................................................................4 2.2 Issued Licences and Construction Approvals .......................................................................................................................4 3 PETROLEUM PRODUCTS INFRASTRUCTURE ........................................................................... 6 3.1 Offloading Infrastructure.........................................................................................................................................................................6 3.2 Petroleum Storage Depots ...................................................................................................................................................................7 3.3 Transportation Infrastructure ...............................................................................................................................................................8 3.4 Petrol Stations .................................................................................................................................................................................................8 3.5 Liquefied Petroleum Gas (LPG) Facilities ................................................................................................................................10 4 PETROLEUM PRODUCTS SUPPLY AND STOCK MONITORING ............................................ 12 4.1 Bulk Procurement System ....................................................................................................................................................................12 4.2 Imported Petroleum Products .............................................................................................................................................................14 4.3 Petroleum Products Stock Monitoring ........................................................................................................................................15 4.4 Petroleum Consumption in the Local Market ........................................................................................................................16 ii | Downstream Petroleum Subsector Performance Review Report 2013/14 4.4.1 OMC Sales Performance ........................................................................................................................................................16 4.4.2 OMCs Market Shares ................................................................................................................................................................18 4.4.3 Local Market Consumption ....................................................................................................................................................20 5 PETROLEUM PRODUCTS PRICING .............................................................................................. 22 5.1 Crude Oil Prices in the World Market ..........................................................................................................................................22 5.2 Refined Petroleum Prices in the World Market ...................................................................................................................23 5.3 Local Market Petroleum Products Prices .................................................................................................................................24 5.4 Exchange Rates .............................................................................................................................................................................................26 6 PROMOTION OF DOMESTIC USAGE OF LIQUEFIED PETROLEUM GAS (LPG) ............... 27 6.1 LPG Usage Promotion .............................................................................................................................................................................27 6.2 LPG Imports ......................................................................................................................................................................................................28 7 GAS CONDENSANTE FROM SONGO SONGO ............................................................................ 30 8 PETROLEUM PRODUCTS MARKING PROGRAM ....................................................................... 31 8.1 Reasons for Introduction of Fuel Marking ...............................................................................................................................31 8.2 Fuel Marking Technology Used in Tanzania ............................................................................................................................31 8.3 Fuel Marking Programme in Tanzania .........................................................................................................................................33 8.3.1 Molecular Marking of Petroleum Products...............................................................................................................34 8.4 Monitoring of Marker Concentration Level ..............................................................................................................................35 9 COMPLIANCE MONITORING ............................................................................................................ 36 9.1 Licence Conditions Monitoring ..........................................................................................................................................................36 9.2 Petrol Stations Operating Without Licences ..........................................................................................................................36 9.3 Petroleum Products Quality Mo nitoring ....................................................................................................................................36 | iii Downstream Petroleum Subsector Performance Review Report 2013/14 9.4 Monitoring Adherence to Other Applicable Laws..............................................................................................................37 9.5 Monitoring Adherence to Health, Safety and Environment Requirements ...................................................37 9.6 Emergency Response Plan ..................................................................................................................................................................37 9.7 TAZAMA Pipeline Inspection ..............................................................................................................................................................38 9.8 Consultation with Other Stakeholders ........................................................................................................................................39 10 FISCAL IMPACT OF REGULAROTY INTERVENTIONS .............................................................. 40 11 CHALLENGES AND MEASURES TAKEN ....................................................................................... 41 12 ACHIEVEMENTS ................................................................................................................................... 44 13 CONCLUSION ........................................................................................................................................ 45 14 APPENDIX .............................................................................................................................................
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