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According
to a report published by the Energy and Water Utilities Regulatory
Authority (EWURA) , Gulf Africa Petroleum Corporation (GAPCO) is leading
13 other oil marketing companies (OMCs) which controls above 2.0 per
cent of the market while the rest share the remaining less than 5 per
cent of the market.
Ewura said in a report that in order to maintain its leadership, GAPCO has adequate supplies of products through out the year with a combined storage capacity of almost 220 million litres and over 80 fuel service stations.
The Dar es Salaam storage facility is one of the largest in the country and caters for other oil marketing companies. BP Tanzania Limited is the second largest market leader. BP Tanzania which is the oldest company in business compared to GAPCO that entered the market on mid-1990s after purchasing the assets of the Esso Standard.
In March 1982, BP bought out Shell's interests and the company became BP Tanzania Limited and controlled close to 40 per cent of the market then. The ranking of the BP is minus the aviation fuel business which it controls by almost 70 per cent. The third in the line is Oryx Tanzania Limited which commands 8.6 per cent of the market.
Oryx like GAPCO entered the domestic market in 1990s after buying out AGIP of Italy's shares. Fourth is Oil Com Tanzania Limited with a 7.6 per cent stake in the domestic market. Unlike the top three firms, Oil Com entered the market as a new company and managed to carve off a significant share of the market.
Engen Petroleum which controls 6.7 per cent of total oil market is fifth on the Ewura ranking while Nat Oil is on number six position with a stake of 6.1 per cent with Camel Oil coming next commanding 6.0 per cent of the market. Others in order of their ranking are Gulf Bulk Petroleum on eighth position with 5.9 per cent market share, Total Tanzania is ninth with 5.6 per cent of the stake while Acer Petroleum has 5.54 per cent of the stake.
Others in the top 13 ranking are MGS International with 5.50 per cent market share, Lake Oil, Kobil/World Oil, and HASS Petroleum control which have between 2-4 per cent of the market. The remaining OMC are regarded as small companies that control less than 2 per cent.
The market share rates are imported requisite for a company to have representative at Petroleum Importation Coordinator (PIC) board. The companies with over 10 per cent will have three representatives while with less than ten but above 5 per cent two members and less than five one member.
PIC will coordinate the importation requirement per OMC and pass-over the request to the bulk procurement firm. It will also be the oversight of the regulations and procedures of bulk importations. PIC board will be picked this month. Reliance Industries Middle East (DMCC) a subsidiary of Reliance Industries Limited, registered in the UAE took over management control and majority shareholding of GAPCO Mauritius in July 2007.
GAPCO with operations in East Africa is one of the largest independent petroleum marketing and trading organizations and is primarily involved in petroleum product imports, retail and wholesale marketing, trading, storage, distribution, supply and transport of oil products to the countries in East and Central Africa.
In the mid-90s it bought the shares of Esso Standard in Tanzania and Uganda. Now it works throughout the land-locked Great Lakes region, serving Kenya, Tanzania, Uganda, Rwanda and Burundi, Congo, Zambia and Malawi.
PetrolWorld 200911
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