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Exporters behind sale of adulterated fuel- TBS
2006-04-15 09:03:55
By Judica Tarimo
After the government reduced import tax on Jet AI kerosene used to fuel airplanes, oil marketing companies started taking advantage of the move to make unholy money, The Guardian has learnt.
Because other kinds of fuel like diesel and petrol, among others, did not get a respite from the taxman, big sellers are mixing the products with kerosene, which is cheaper.
The oil marketing companies in Dar es Salaam are now reportedly making millions of money, selling adulterated fuel products at the expense of unsuspecting consumers, according to Tanzania Bureau of Standards (TBS).
TBS Director General, Daimon Mwakyembe said on Thursday in Dar es Salaam, that the government reduced tax on kerosene imports after foreign airlines complained of high fuel prices in Tanzania.
’Foreign airlines were shunning Tanzania.
They had shifted to Kenya and other neigbouring countries where jet oil prices are cheaper,’ Mwakyembe said.
Tanzania was losing so much money as airlines diverted operations to neighbouring countries.
The government opted to reduce tax on kerosene imports, he said.
Oil companies got the go ahead to import large quantities of kerosene and now they were abusing the respite by mixing the product with petrol and diesel, he said.
’Import tax reduction on kerosene was done in good faith but oil companies have taken advantage, they are selling adulterated fuel in filling stations,’ said Mwakyembe.
TBS has uncovered a number of filling stations in Dar es Salaam selling adulterated fuel, he said.
He added that TBS was contemplating closing down some stations.
The companies selling mixed fuel products are too many, he said, adding that next week the body would take a decisive action.
To curb the problem, he said the government should consider banning importation of kerosene by oil companies or increase import tax.
He said though many companies were importing fuel for aircraft only, BP Ltd was supplying the same to aircraft.
BP Ltd in the past used to have a monopoly of selling fuel for aircraft in Tanzania.
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