The government of Sao Tome and Principe has defended its decision to directly award a contract to Trafigura for fuel imports, citing cost reduction and transparency. The move has been criticized on social media, with allegations of a contract that is prejudicial to national interests. Minister of State for Economy and Finance, Gareth Guadalupe, clarified that the document approved by the Council of Ministers is a deliberation that authorizes the direct award to Trafigura and provides for a possible credit line of 20 billion.
Guadalupe explained that the deliberation was approved in December 2025 and is valid until December 18, 2026. He rejected the existence of an alleged contract referred to in social media publications, stating that if such an instrument existed, the government would make it public. The minister emphasized the difference between the deliberation and a supply contract, highlighting that the authorization allows the government to use a direct award procedure and a credit line if necessary.
The government has justified the direct award to Trafigura, citing the company's past performance in fuel imports. Guadalupe noted that since the government took office, three public tenders had been held for fuel imports, all of which were won by Trafigura. He stated that these operations allowed for a progressive reduction in acquisition costs and, consequently, fuel prices in the national market.
Guadalupe provided data on the evolution of fuel imports, highlighting that the import operation in March 2025 was cheaper than the last operation carried out by the previous government in November 2024. He also noted that the operation in June 2025 allowed for a new reduction in costs, followed by another decrease in October of the same year. The minister attributed the decrease in prices to the existence of progressively more favorable commercial conditions.
The minister emphasized that the maintenance of the direct award to Trafigura was based on the company's experience and guarantees of supply. Guadalupe noted that it would not make sense to abandon a supplier that had demonstrated the capacity to ensure imports precisely when the international market was facing difficulties. He highlighted that the weight of diesel in import costs is significant, representing 67% of the total value estimated between 15 and 16 million euros.
Guadalupe also revealed that the monthly expenses with diesel delivered in May amounted to around 3.5 million euros. He stressed that the reduction of acquisition costs is one of the main arguments for maintaining the adopted strategy. The minister noted that the evaluation of this advantage also depends on knowledge of prices per operation, financing conditions, transport costs, and charges associated with each supply.
The authorization for a possible credit line of 20 billion has raised questions about the operation's financial scope. Guadalupe explained that the possibility is part of the Council of Ministers' deliberation and will only be used if circumstances require it. He also related the deliberation's validity period to the country's energy planning, noting that the government expects the Agua Casada project to be completed by December 2026, which could reduce dependence on imported fuels.
Key points
- The government of Sao Tome and Principe defends its decision to directly award a contract to Trafigura for fuel imports, citing cost reduction and transparency.
- The direct award to Trafigura has been justified by the company's past performance in fuel imports and its guarantees of supply.
- The authorization for a possible credit line of 20 billion has raised questions about the operation's financial scope and conditions.
