Hinda-Mbuende slams Vitol fuel deal
Former Namcor acting managing director Maureen Hinda-Mbuende has criticised the government’s decision to award international oil trader Vitol through its subsidiary Vitol Bahrain E.C a N$7.2 billion deal to supply Namibia with fuel for three months. Hinda-Mbuende’s comments come at the same time as claims from industry players that the state-owned oil company offered a […] The post Hinda-Mbuende slams Vitol fuel deal appeared first on The Namibian .
Former Namcor acting managing director Maureen Hinda-Mbuende has criticised the government’s decision to award international oil trader Vitol through its subsidiary Vitol Bahrain E.C a N$7.2 billion deal to supply Namibia with fuel for three months.
Hinda-Mbuende’s comments come at the same time as claims from industry players that the state-owned oil company offered a cheaper deal than Vitol’s, which will now supply fuel to Namibia for N$2.4 billion a month.
Industries, mines and energy minister Modestus Amutse last week said Vitol was selected as the sole supplier of fuel because it best met the government’s requirements.
However, Hinda-Mbuende told The Namibian last week that the contract will damage the long-term competitiveness of the downstream fuel sector.
“This is counter-productive and monopolistic,” she said.
Vitol’s 100% owned subsidiary, Vivo Energy, owns Shell and Engen-branded service stations across the country.
Hinda-Mbuende said Vitol could use information about its competitors gained through its import business to compete for service stations in its retail business.
“The National Petroleum Corporation of Namibia (Namcor) used to buy fuel from Vitol. It made it easier to compete for Namcor’s clients. Namcor’s biggest customers are [already] being targeted by Vitol,” she said.
