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No tax cuts, but oil price control looms
2006-05-26 09:53:20
By Guardian Reporter
The government has given the Fair Competition Commission the green light to clamp down on oil dealers who take advantage of the current high price increases on the international market to fleece consumers.
A statement issued in Dar es Salaam and signed by Deputy Minister for Energy and Minerals Lawrence Masha said government agencies such as Ewura, Sumatra would be mandated to act on arbitrary oil price increases.
The statement was released at the conclusion of a two-day meeting of senior government officials led by the Prime Minister Edward Lowassa, oil dealers and owners of public service vehicles.
’’The government will ensure that good business practices are adhered to stop dealers from taking advantage of fluctuating prices on the world market to exploit consumers,’’ the statement said.
The statement said the government would continue dialoguing with players in the industry to cushion consumers against economic shocks wrought by escalating oil prices.
’’The aim is to put in place a system that would allow stability in oil prices without interfering with the provision of services,’’ the statement added.
The outcome of the two-day meeting is likely to be a disappointment to consumers in the public transport sector who had hoped that the government would make concessions on taxes to ease the cost of transport.
Consumers were reminded of the obligation to use oil responsibly.
Since 2000 when the government liberalised the oil industry, the number of oil importers has gone up.
However, the government in collaboration with the Tanzania Petroleum Development Corporation, keeps tabs on changes in oil prices to safeguard consumers against the avarice of unscrupulous businessmen.
The statement noted that serious shortage has never been experienced under the open-door policy.
The national oil consumption stands at 102,000 tonnes per month,’’ according to the statement.
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