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TPDC to build 100 fuel stations in rural areas

TPDC to build 100 fuel stations in rural areas

Tanzania Petroleum Development Corporation (TPDC) will collaborate with district councils and the private sector to build 100 fuel stations in the rural areas in five years.

The TPDC Managing Director, Dr James Mataragio unveiled this recently noting that “Most of the fuel stations have been erected in the urban areas, and thus this new initiative will benefit the rural people,”

The TPDC project that will be implemented through its subsidiary company, TANOIL to bring closer fuel services to the rural people.

So far TPDC has six fuel stations in Tanga, Mara, Singida, Geita and Manyara. Only three fuel stations operating are namely Segera in Korogwe District, Tanga Region, Tarime District and Mara District in Mara Region.

The other three that will be rehabilitated in this fiscal year and include Singida, Makuyuni in Manyara and Geita.”

Dr Maratagio said TANOIL is participating in the oil market to spread the business especially in the district and villages that have been left aside by investors in fuel stations.

"As TPDC we would like to reach out to all citizens and we have seen the need to provide this service to a place where the service has not yet reached," said Dr Mataragio.

Dr Mataragio said TANOIL has been in the business since May this year and has shown huge success.

In his presentation TANOIL General Manager, Kapuulya Musomba said in the short time they have exceeded the target set by opening fuel stations in Tanga, Mara, Geita, Singida and Manyara.

He said the sales trend from March to July 2021 was 26 million litres with petroleum motor spirits (PMS) 12.078 million litres and automotive gas oil (AGO) 13.924 million litres far above the target set of 0.7 million litres for PMS and  2.4 million litres for AGO.

He said the average sales were 5.2 million litres per month therefore to penetrate the village will increase their income which will lead the government to earn revenue.

He said for the business they have done in the short span of five months they have been able to pay 17.9bn / - tax.

Elaborating, Musomba said they will look forward to carrying promotions through marketing campaigns targeting different groups of customers.

Also, they will adopt price flexibility to allow the company to maintain a reasonable profit margin and meet the competitive oil market price.

Mr Musomba said TANOIL will continue to improve its operational performance through resources allocation, services design technology and facility plans.

To safeguard the national supply of petroleum products and related products, Mr Musomba said will go through the quality of products, branding and construction of outlets, construction of storage facilities and efficient operations.

He said the challenges faced included lack of outlets, lack of storage facilities, stiff market competition and unstable market price.

He said TANOIL will strive to cultivate efficiency and competence for its petroleum products and services, planning to lead the way in achieving the targets stipulated in their strategic plan. TANOIL is committed to ensuring the company meets high quality and standards in its operations.

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