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High fuel prices here to stay, oil dealers say
2006-06-25 09:59:34
By Correspondent Dominic Nkolimwa
Oil dealers in Tanzania have ruled out the possibility of a lowering fuel prices in spite of the government’s decision to remove the Value Added Tax (VAT) on imported petroleum products.
Speaking to the Sunday Observer in an interview in Dar es Salaam yesterday, the Black Gold Limited manager, Kuljinder Mann, cautioned consumers not to expect a drop because tax on excise duties and road toll had increased.
He said the VAT waiver won’t have an impact on the current fuel prices.
Kuljinder requested the government to re-think its decision to raise tax on road toll and excise duty, since it affected consumers adversely.
On his part, Ahmed Awadh of Oil COM Kijitonyama said the government should be vigilant with the big oil importers to ensure that the recent tax measures are adhered to.
Charles Mapunda of Kinondoni Petrol Station said that the process of removing the Value Added Tax should be coupled with the closure of all illegal petrol stations.
’’Some people fear to run legitimate petrol business because of VAT, and run pirate petrol stations instead,’’ he said.
He speculated that unless the government acts appropriately on the issue, pirate petrol stations will mushroom.
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