Fuel prices rise in Tanzania despite govt scrapping levy
Retail prices of fuel in Tanzania have risen despite the government scrapping Tsh100 ($0.043) fuel levy.
The scrapping of the levy was meant to cushion consumers from cost increases as it anticipates a spike in global oil prices following the Russia-Ukraine war.
The Ministry of Energy, in a statement on Monday, said that the $0.043 surcharge on a litre of petrol, diesel, and kerosene, imposed since July 2021, has been scrapped as the government monitors the international market in the face of the eastern Europe conflict.
However, on Tuesday, Energy and Water Utilities Regulatory Authority (Ewura) said that from March 2, motorists in Dar es Salaam will buy a litre of petrol at Tsh2,540 ($1.10) from Tsh2,480 ($1.07), while a litre of diesel will cost Tsh2,403 ($1.04) a litre from Tsh2,338 ($1.01) and a litre of kerosene will cost Tsh2,208 ($0.95) a litre up from Tsh2,291 ($0.99).
Ewura Director-General Godfrey Chibulunje said that the fuel prices would have been higher if the $0.043 levy had not been scrapped.
“If the government had not intervened and assisted, the petroleum products imported through Dar es Salaam port prices would have been Tsh2,640 ($1.14) for petrol, Tsh2,503 ($1.08) for a litre of diesel and Tsh2,308 ($1) for kerosene,” he said.
Petroleum products imported through the Tanga port would have now cost Tsh2,563 ($1.11) per litre of petrol and Tsh2,484 ($1.07) for diesel, while at Mtwara a litre of petrol would have cost Tsh2,577 ($1.11) and diesel Tsh2,530 ($1.09).
Oil prices have been rising in the world market amid growing concern of disruption of supply following Russia’s invasion of Ukraine.
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