Tanzania: Ewura High Profile efforts on Fuel Abuse Procedures go to Court

The case is becoming a cause celebre as it represents one of those rare occurrences where a magistrate’s court overrules a body with powers and jurisdiction comparable to the powers of the High Court of Tanzania. It has also jolted Ewura’s high-profile campaign to curb the rising incidence of adulterated fuel in Tanzania.

The regulators had ordered the service stations closed. But with the reprieve, the stations in question will continue to sell petroleum products despite the fact that laboratory tests undertaken by Ewura showed traces of adulteration.  “We have to respect the court injunction issued by the Morogoro Magistrate’s Court because saying anything would be contempt of court,” Ewura Director General Haruna Masebu told local media.

The injunction was issued by Resident Magistrate Amri Msumi after an application lodged before the court by National Oil Tanzania Ltd was heard ex-parte. According to information obtained by local media, the operation that led to closure of the service stations in question was a joint exercise between the Tanzania Revenue Authority and Ewura.

Among the service stations that benefited from the reprieve are Oil Com at Kihonda, Kobil and Camel Oil at Msamvu, Kobil on the Dodoma highway, Petrol in Sokoine area and Oil Com at Nane Nane. Minister for Finance and Economic Affairs Mustafa Mkullo recently lamented the fact that revenue from the petroleum sector had dropped and directed the TRA to redouble its efforts to collect more government revenue from the lucrative sector.

However, the injunction by the Morogoro court means that the momentum gained in the fight against adulterated fuel and dumping will be lost as such products continue being sold until such time as the legal issue is sorted out. The saga began when inspectors from Ewura conducted inspections in Morogoro Municipality and discovered after laboratory tests that some service stations were selling adulterated fuel.  The inspectors sealed some of the petrol stations but some owners broke the seals and continued with their business and, when the inspectors went to effect closure of the petrol stations, they were presented with the injunction from the magistrate’s court.

Most businessmen in the sector were willing to work with Ewura, because all companies that operate in an ethical manner suffer from adulteration due to the distortions it introduces into the pricing mechanism, with adulterated products being cheaper but hazardous. Ewura has not in the past hesitated to close down service stations that have been found breaking the law. In January, more than 10 petrol stations in Arusha and Moshi were ordered closed down after the owners were seen to have been operating against the law.

Thirteen other stations paid fines totalling Tsh39 million ($37,000) and were recommended for reopening.  A further nine stations in Morogoro and Dodoma were fined Tsh37 million ($35,000). Some service stations in Morogoro complied with the Ewura order but applied for retesting at their cost, while others remained shut until they paid the fines.

Inspectors from Ewura get the signature of every petrol station inspected on three samples; while one sample is retained by the station, one is taken for laboratory testing and the third one is retained by Ewura.

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