The Energy and Water Utilities Regulatory Authority (Ewura) has announced a reduction in fuel prices, also hinting on possibility of stabilisation by Tanzania’s oil marketing sector.
The fuel marketing and pricing watchdog issued new price caps for petrol, diesel and kerosene, indicating a decline over the ones in use last month.
The new package of retail prices, revealed at a news conference in Dar es Salaam yesterday, show that a litre of petrol will now sell at 2,183 (down from 2,231/-). This comes to a 2.16 per cent cut.
A litre of diesel will meanwhile sell at 2,044/- (down from 2,098/-), meaning a 2.59 per cent drop.
Ewura’s Head of Communication and Public Relations, Titus Kaguo, announced however that there will be no change in the price of kerosene this month.
He attributed the price adjustment to “changes in world market prices and reduction of premium and freight costs”.
Elaborating, he said world market oil prices had risen by an average of USD 1.58 per tonne (or 0.14 per cent) and that of diesel had dropped by USD 27.03 per tonne (or 2.68 per cent).
He added that freight and premium costs had decreased by USD 45.36 per tonne (or 51.71 per cent) on average and USD 13.94 per tonne (or 16.13 per cent) in respect of petrol and diesel, respectively.
“These are the key factors behind reduction of petrol and diesel prices at this time,” said the Ewura spokesman, attributing part of the relief to the recently introduced bulk oil procurement arrangement.
He said not only had the arrangement had a positive impact on fuel prices but also it was behind the easing of delays in supply and distribution of oil associated with problems with offloading of consignments at the Dar es Salaam port.
Kaguo explained that prior to the introduction of the bulk procurement arrangement, offloading took more than 20 days, but this has been cut to a short three days at most under the new system.
“The easing of delays at the port has positive implications on the country’s oil marketing as it helps to stabilises fuel supply systems, which used to be blamed for inconsistency and inefficiency in distribution and supply leading to artificial shortages and price hikes,” he said.
“However, the trend has now improved substantially and fuel prices are gradually falling while supply is slowly stabilising. In my opinion, bulk procurement has brought much-needed relief to the both the government and Tanzanian public,” he added.
Meanwhile, Ewura has said it is tailing five oil marketing companies alleged to have violated health and environmental standards.
The firms are believed to have installed fuel storage facilities which do not meet health and environmental standards as specified in the country’s laws.
“We got these reports from the field, and that’s why we have initiated investigations…. If it is proved that the companies have violated the law, they risk having their licences revoked or suspended,” said Kaguo.