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We`ve no mandate on fuel prices - EWURA
2007-07-07 10:54:02
By Pastory Nguvu
Just a few days after Minister for Finance Zakia Meghji had said that the Energy, Water and Utilities Regulatory Authority will ensure that oil prices do not go beyond 1,400/- per litre, the latter said yesterday it had no mandate to interfere with the prices.
Speaking exclusively to The Guardian in Dar es Salaam, EWURA Acting Director General Kisyeri Machage said as a regulator of the petroleum sector, the authority`s mandate was only limited to technical and safety regulation.
EWURA is also charged with promoting effective competition in the sector.
``The petroleum downstream market in Tanzania is competitive. Operators charge different margins, hence the price differential among various petrol stations,`` Machage said in a telephone interview.
He said, however, that EWURA was carefully observing the market situation and would intervene where necessary.
Effective from July 1, prices of petroleum products have shot up, with some filling stations selling petrol at 1500/- per litre and 1400/- per diesel.
When winding up government budget estimates for 2007/2008 fiscal year, the finance minister said petrol prices would not shoot beyond 1400/-.
She said EWURA would ensure that fuel prices did not go up unreasonably.
``I urge the Energy, Water and Utility Regulatory Authority to take charge of this area so as to make sure that there is no price fluctuation on oil-related products,`` said Meghji.
Clarifying on the sort of intervention Machage said: ``According to our understanding of the world market prices, foreign exchange rates and other costs associated with petroleum business including taxes, reasonable operators` margins, with the recent tax increase, the prices in Dar es Salaam should ideally not exceed 1,398/- per litre of petrol, 1,327/- litre of diesel and 876/- litre of kerosene``.
He added: ``EWURA is carefully observing the market situation and shall intervene where necessary.
We will summon those who operate petrol stations and demand explanations on reasons for going beyond the fixed prices,`` he said.
He said his authority would embark on disseminating information to the public with regard to petroleum products pricing, starting September 1, 2007.
``Our intention is to guide petroleum consumers and the entire public on price trends amongst the oil marketing companies,`` he said.
He said the information would help consumers to make a choice of their preferred petroleum supplier based on, among other factors, the most competitive price.
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