São Tomé Defends Trafigura Direct Award

SÃO TOMÉ AND PRÍNCIPE · FUEL

Social media accusations have put a fuel supplier at the centre of a row in São Tomé and Príncipe, a two-island nation in the Gulf of Guinea. Gareth Guadalupe, the Minister of State for Economy and Finance, answered them in remarks to journalists reported on Saturday 7 November 2026.

He said the document at issue is not a contract with Trafigura, one of the world’s largest independent oil traders, but a resolution that allows a direct award without a competitive tender. For US readers, it is a small test of how a thin budget buys fuel, which matters to lenders, development partners and travellers.

The government calls its fuel deal a permission, not a contract, and points to three tender wins.

What the Minister Said About the Document

Guadalupe said the paper approved by the Council of Ministers, the cabinet, is a deliberation, meaning a government resolution. It authorises a direct award to Trafigura and allows a credit line of 20 billion to be used only if financing needs require it.

The reported remarks did not give the currency, lender or terms of that line. He added that if a contract of that kind existed, the government would publish it.

The deliberation was approved in December 2025 and is valid until 18 December 2026. Until then, it may use the direct-award route.

The Case for Keeping Trafigura

The minister said that since this government took office there have been three public tenders for fuel imports, and Trafigura won all three. He said those operations steadily cut purchase costs and so pump prices.

He said the March 2025 import was cheaper than the last one under the previous government in November 2024. The June 2025 import cut costs again, and so did October 2025, though the report of his remarks gives no pump-price figures.

He said that after the international fuel crisis began on 2 March 2026, the country still imported at prices below the three earlier operations. Given that record and the company’s supply guarantees, he said it made no sense to drop a supplier that had proved it could deliver in a difficult market.

What the Fuel Bill Looks Like

Diesel made up 67% of the value of the last operation he cited, which the minister estimated at 15 to 16 million euros (about US$17 to 18 million) including goods and freight. Monthly charges for diesel delivered in May were about 3.5 million euros (about US$3.9 million).

His argument was simple: the cheaper the fuel, the lower the burden on the state. We convert euros at a rounded US$1.12 per euro.

The islands import almost all their fuel, and diesel generators supply most of the electricity. In early October 2026 the country ran out of petrol and cooking kerosene, as our report on the petrol and kerosene shortage showed.

Why the Deal Runs to December

The minister tied the 18 December 2026 expiry to energy planning. The government expected the Água Casada project, an energy project with 11 megawatts of capacity, to be finished from December 2026.

If it is completed and starts operating, it could cut dependence on imported fuel. That outcome depends on the project being finished.

The Shortage and the Ship

On the recent shortage, the minister said the government chose to wait for a ship carrying several products instead of importing only petrol. Petrol came first, diesel next because of power generation, and jet fuel last.

What It Means for You

For US lenders and development partners, the issue is governance: a direct award to a global trader, with no published contract, means outsiders cannot yet check the terms. The minister said a contract would be published if one existed, which gives observers a clear test to apply later.

Travellers should know that fuel shortages on the islands affect taxis, boats and power, so plans need some slack. This is analysis of the minister’s account, not investment or travel advice.

What Is Not Known

The price per cargo, the three tender results and the bidders are unknown. We also do not know whether other companies bid.

The text of the deliberation has not been seen, and the currency, lender and terms of the 20 billion credit line were not stated. What happens after 18 December 2026 is also unknown, and the minister’s cost claims are his own and unaudited.

All of this is the minister’s own account as reported on 7 November 2026. We found no independent report of his remarks and no published text of the deliberation.

A local opinion piece citing unverified documents mentions a credit line of up to 20 million euros (about US$22 million), and asks the prosecutor-general to review the process. It draws no conclusion of wrongdoing.

Frequently Asked Questions

Did São Tomé sign a contract with Trafigura?

The minister said the approved document is not a contract but a deliberation, a government resolution. It authorises a direct award to Trafigura without a competitive tender.

How long does the authorisation last?

The deliberation was approved in December 2025 and is valid until 18 December 2026. What happens afterwards has not been stated.

Why does the government defend the choice?

The minister said Trafigura won all three public fuel tenders under this government and cut purchase costs each time. We have not seen the documents, and the claims are unaudited.

Sources: statements by Minister of State for Economy and Finance Gareth Guadalupe, reported 7 November 2026 (read 9 November 2026), and the Council of Ministers deliberation of December 2025 as he described it. The document itself was not seen. Hub: São Tomé and Príncipe.

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error

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