Tanzania Hikes Prices for Petroleum Products
Tanzania Energy and Water Utilities Regulatory Authority (EWURA) Wednesday, announced a raise in the prices of petroleum products, citing rising oil prices in the international market.
The East African country’s energy regulator raised the maximum price for petrol, diesel and kerosene.
Fuel prices have a big influence on the inflation rate in the East African country. In the 12 months through November inflation eased to 4.4 percent, from 5.1 percent the previous month, but the fuel price hikes could push the inflation rate up again, analysts said.
Tanzania’s EWURA raised the maximum retail price of petrol by 0.35 percent and increased the cap for diesel by 1.71 percent.
Reuters reports that the maximum kerosene price was lifted 4.57 percent in the latest monthly price decisions, which take immediate effect.
“The changes in local prices of petroleum products are mainly due to changes in world oil market prices and bulk procurement system (BPS) premiums,” EWURA said in a statement.
The regulator increased the price of petrol in the commercial capital Dar es Salaam by 8 shillings per litre to 2,167 shillings ($0.9709), and the price of diesel in the capital by 34 shillings to 2,018 per litre.
Kerosene prices in the city rose 89 shillings to 2,031 shillings per litre. ($1 = 2,232.0000 Tanzanian shillings)
In Nigeria, there are rumours that the government has a plan to increase the fuel prices. This expectation caused users to embark on panic buying about four weeks ago and resulted in a major fuel crisis.
While drop in international oil prices was said to have caused the fuel crisis in Nigeria at different times, rise in the global oil prices is affecting Tanzania. It is still uncertain how Tanzania citizens will react to the increase in pump prices of the product, however, it is certain that the change in prices will rejig the country’s economy