Maravi

Magande welcomes diesel exportation

Magande welcomes diesel exportation
Written by Florence Bupe
Friday, February 27, 2009 9:05:21 AM

FORMER finance minister Ng’andu Magande has welcomed the decision by the government to export diesel provided that the exercise will create reserves in form of cash.
But energy expert Andrew Kamanga has suggested adjustments in the crude import quantities as a way of addressing the issue of reduced consumption of diesel on the local front.

Commenting on the decision by the energy ministry to allow for diesel exports as a way of relieving pressure on the Ndola fuel terminal managed by Tanzania Zambia Mafuta (TAZAMA) Pipelines, Magande said there was nothing wrong with exporting the commodity as long the exercise did not create a shortage on the local market in the long run.

“Unless someone somewhere has made a mistake and not followed the conditions laid down for the export exercise to be effected, I don’t see anything wrong with the move by government to allow for diesel exports. After all, we do not have any alternatives at the moment,” he said. “If government, through the Ministry of Energy, has given a go ahead for diesel exports, it suggests that they know that we have more than enough to feed and satisfy the local market, and we can’t just throw away the excess.”

He said the government had in the recent past taken precautionary measures to avoid crises in the supply of sensitive products such as fuel.

Magande also explained that the crude oil, which is a mixture of diesel and petrol, made it difficult to adjust the quantity of diesel as a separate product.

But Kamanga advised that the government should consider reducing imports of crude as an immediate solution as opposed to exporting in view of reduced fuel consumption by the local market.

He said there was need for the government to review the supply position and look at what was being consumed against imports.

Another energy consultant, Evaristo Kasunga, supported the government’s decision, but emphasised that there was need to more closely monitor operations by Oil Marketing Companies (OMCs) to ensure that they were not importing finished products without authority.

Labels: DIESEL, MAGANDE, TAZAMA

posted by MrK @ 9:05 AM