Oil prices to remain stable despite the COVID-19 pandemic–EWURA

03Apr 2020
The Guardian
Oil prices to remain stable despite the COVID-19 pandemic–EWURA

​​​​​​​THE Energy and Water Utilities Regulatory Authority (EWURA) has maintained that fuel prices in the country will remain stable despite the outbreak of the global pandemic—COVID-19.

EWURA Manager of Communication and Public Relations, Titus Kaguo.

According to the authority, prices are likely to keep on shrinking since there is enough fuel stock that can be consumed for the next two months.

EWURA Manager of Communication and Public Relations, Titus Kaguo told The Guardian that current lockdown of numerous fuels -depended sectors and other activities in the globe, which actually doubling down on a pessimistic oil demand outlook despite numerous short-term risks to supply.

He informed that the Petroleum Act (2015) requires the country to have a petroleum reserve to cater for at least 15 days.

“In Tanzania, we usually import fuel in advance to serve for two months ahead, which means, we’re not expecting to experience any fuel shortage during this catastrophic period,” he said noting spreading of the Coronavirus has not affected importation of oil in Tanzania.

He said the country was expecting to receive a consignment of fuel on Wednesday this week which will start to be used from July this year.

The country’s demand for fuel stands at 300,000 tonnes per month, he said.

Kaguo insisted that the authority will not tolerate any fuel seller who will be spotted to market the crucial oil in discordant to the authority’s set prices.

“In such cases, we will take severe punitive measure. Currently, the demand for fuel at the world market has substantially decreased to an interim suspension of many activities which banks on fuel power, we cannot tolerate with any unscrupulous dealer who will use the chance to benefit himself illegally,” he warned.

A random survey by The Guardian to various fuel stations in the capital city established that selling prices for petroleum (Diesel) has rebound from 2,263/- to 2,100/-

Kaguo said EWURA was currently implementing a crucial strategy, aiming to ensure the county reaps more benefits from petroleum, gas and water sub-sectors.

Among the strategy, according to him, is establishment of mobile fuel services in Tanzania’s rural areas.

“In most villages fuel businesses were conducted in dangerous and unsafe environment. The established services (mobile fuel stations) are in accord to Petroleum Retail Operations in Township and Village Rules, 2014. In villages some people are storing and selling fuel under gallons, which is poor and dangerous practices,” Kaguo observed.

He also spoke over lessening of fuel adulteration, unveiled that the authority has successful managed to counter a spate of fuel adulteration in the country from 78 percent in 2007 to at least 4 percent during last year.

EWURA is an autonomous multi-sectoral regulatory authority established by the EWURA Act Cap 414 of the laws of Tanzania. It is responsible for technical and economic regulation of the electricity, petroleum, natural gas and water sectors in Tanzania pursuant to Cap 414 and sector legislation.