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Fuel prices won’t drop - govt
 
2006-05-18 09:19:20
By Ludger Kasumuni and Pascal Shao

  A BP Mwenge Express Petrol Station worker Thomas Nathan fills a petroleum to one of his costumer car yesterday. The price of fuel in the country is extremely higher which cause the transport fear to increase (Photo: Mroki Mroki)  
   
Fuel prices in the country have shot up sharply, from an average of 1,030/- per litre early this year to 1,360/- while dropping in the world market to USD 69 per barrel on Tuesday from USD 75.35 late last month.

However, Tanzanians have been warned not to expect a dramatic fall in fuel prices, the government said yesterday.

In an exclusive interview with The Guardian, Assistant Commissioner for Energy in the Ministry of Energy and Minerals, Prosper Victus said the recent rise in fuel prices was out of the scope of the government.

’’Consumers must brace for harder times. They should not expect a drop in prices of petroleum because it is determined by factors beyond the government’s control,’’ Victus said.

Interviewed, operators of petrol stations in Dar es Salaam, who still had stocks they bought at lower prices, spoke of a boom in profits.

They confirmed that, although fuel imports have not been affected by the spike in prices on the world market, have been reaping profits as pump prices soar.

Rising fuel prices have forced some would-be travellers to cancel trips to upcountry destinations after fares have gone up.

’’The bus fare to Mwanza from Dar es Salaam has been 24,000/-. I was shocked this morning when I was informed that the fare had shot up to 32,000/-,” said one Salma Haji.

Bus-fare to Kampala was 40,000/-, but is now 52,000/-.
In Dodoma, fuel is retailing at 1,380/- (petrol) and 1,290/- (diesel). Taxi charges in the town have also been affected by the price rise. The minimum charge has been 2,000/- for a trip, now has gone up.

A survey conducted in Arusha and Kilimanjaro regions showed similar increases in fuel prices of up to 1,350/- from 1,100/- per litre.

Travellers between Arusha and Moshi are now paying 2,000/-, up from 1,500/-. Between Arusha and Dar es Salaam travellers are paying 13,000/- instead of 10,000/-.

Luxury buses are charging up to 17,000/- instead of 14,000/- for the same distance.

The Assistant Commissioner of Energy listed five factors that led to sharp increases in fuel prices.

These were rise in consumption of petroleum by countries like China; the Nigerian factor, where there is frequent crisis between big petroleum companies and local residents in the oilfields.

Victus also explained that the Middle East Crisis, particularly the Iranian nuclear energy plan, had also resulted in sharp increase of fuel prices.

  • SOURCE: Guardian
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