Motorists likely to dig deep for fuel

17Jun 2016
Our Reporter
The Guardian
Motorists likely to dig deep for fuel

MOTORISTS are likely to dig deeper into their pockets to pay for fuel with effect from next month after Members of Parliament yesterday exerted pressure on the government.

Minister for Finance Dr Phillip Mpango

They wanting it to peg 50/- to each litre of petrol and diesel for the major objective of collecting 250bn/- for water projects in rural areas.

The legislators unanimously called for the increase of 50/- to each litre of petrol and diesel after most of them realized that money allocated for water and health projects in the new budget was not enough to meet the demand.

The Guardian noted that almost every legislator, who got the opportunity to contribute to the debate on the new budget presented by Minister for Finance Dr Phillip Mpango last Wednesday, complained over lack of clean and safe water and health facilities in their constituencies.

Rose Tweve (CCM-Special Seats) launched the campaign yesterday, saying it was necessary for the government to increase 50/- for each litre of fuel to collect funds to facilitate implementation of water projects in rural areas.

Mahmoud Mgimwa( CCM-Mufindi North)spoke strongly on the need to add 50/- to each litre of fuel, asking the government not to be worried by the measure. “For us who lead constituencies located in rural areas will support this measure. I believe the public will agree that we, as CCM legislators, have made the right decision,” he insisted.

Mgimwa said: “In previous budgets we made similar decisions to raise funds for the Road Fund, yet the measures didn’t spark inflation. So, the government doesn’t need to worry about inflation this time around when we want such an amount of money to be pegged to each litre of fuel to raise funds for water projects in rural areas.”

Richard Mbogo (CCM-Msimbo) on his part gave a proposal to the government to think about adding between 20/- and 50/- to every litre of fuel. Adding 50/- has been an agenda of almost every MP who contributed to the debate on the new budget last Friday.

The idea to peg 50/- to each litre of fuel emanated from the proposal tabled by the Parliamentary Budget Committee led by Hawa Ghasia last Friday. In her proposal Ghasia said her committee members failed to reach consensus on the amount to add to a litre of fuel.

According to Ghasia, committee members had an idea of adding between 50/- and 100/- to raise 250bn/- whereby 30bn/- would be allocated for construction of dispensaries and health centres while 220bn/- would allocated for Water Fund.

Ghasia implored the government to work on the idea despite the latter expressing fear of sparking inflation.

Official figures from Energy and Water Utilities Regulatory Authority (EWURA) show fuel is one of the heavily taxed products in the country with at least 17 different taxes and levies tied to every litre of petrol, diesel and kerosene.

Observation from EWURA figures shows over 1,000/- for every litre of petrol goes to the government as taxes . While it costs less than 700/- to transport a litre of petrol or diesel to Dar es Salaam Port ( CIF price) motorists end up paying around 1,800/- per litre in Dar es Salaam.

Government taxes from fuel imports include fuel levy (313/- per litre), excise duty (339/-) and petroleum fee (100/-). Fuel importers also pay 71.65/- per litre being costs payable to local authorities which include demurrage cost, regulatory levy, petroleum marking cost, customs processing fee and weight and measures fee.

Additional charges payable to other local authorities and executive agencies amount to18/- per litre of petrol. Local oil marketing companies that have accused of profiteering from the low oil prices pocket over 100/- per litre of fuel which covers their overheads and profit margins.

The government will respond to the proposal next Monday when winding up the dabate.

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