Fuel reserves extend beyond storage facilities, Tanzania clarifies

DAR ES SALAAM: THE Ministry for Energy has clarified that the country’s fuel reserves extend beyond storage facilities within its borders, encompassing supplies in transit and contractual arrangements with international suppliers, amid rising global oil prices.

The clarification comes following recent adjustments announced by the Energy and Water Utilities Regulatory Authority (EWURA), which reflect ongoing volatility in the global oil market.

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According to the ministry, fuel reserves include petroleum products available locally, shipments en route to the country, and volumes secured through supply contracts with oil companies sourcing from the international market.

Additionally, the ministry stated that domestic fuel prices are determined based on procurement costs in the global market, meaning that fluctuations abroad directly affect pump prices at home.

“In this context, April fuel prices are based on cargoes purchased in March, a period already impacted by the outbreak of conflict in key oil-producing regions, which disrupted supply chains and drove up costs,” the ministry noted.