Oil prices down ahead of festive season

Fuel prices have gone down giving motorists huge relief in December, thanks to the issuance of government subsidy that has continued to stabilise the prices of petroleum products.

The subsidy has played significant in controlling the effects of global oil price fluctuations that would have impacted heavily on local fuel prices.

Due to the subsidy effects, the prices for petrol imported through the Dar es Salaam and Mtwara ports went down by 59/- per litre and 92/- per litre, respectively as compared to the previous month.

The Cap prices for petroleum products unveiled by the Energy and Water Utilities Regulatory Authority (EWURA) show that due to subsidy on petrol prices, motorists in Dar es Salaam will pay 2,827/- per litre of petrol in December compared to 2,886/- per litre in the previous month.

Motorists in Mtwara Region will in this month pay 2,825/- per litre of petrol compared to 2,917/- paid in the preceding month.

However, the pump prices of petrol in the Tanga Region have increased by 9/- per litre to 2,815/- compared to 2,806/- per litre sold during November this year.

According to the EWURA report, the pump prices of diesel in Dar es Salaam, Tanga and Mtwara would have increased by 278/- per litre, 422/- per litre and 416/- per litre, respectively.

But to reduce the impact of an increase in diesel prices, where most of the economic activities depend on diesel, the government issued a subsidy for December fuel prices.

In this subsidy initiative issued by the government, diesel prices have gone down by 83/- litre, 247/- per litre and 243/- per litre in Dar es Salaam, Tanga and Mtwara, respectively.

In the meantime, the price of Kerosene in Dar es Salaam has increased by 141/- per litre compared to the previous prices because of the relatively high weighted average FOB and premium.

Furthermore, apart from creating market stability, the government subsidy has helped to lessen the price variabilities between the regions.

According to EWURA, Oil Marketing Companies are free to sell their products at a price that gives them a competitive advantage provided that it does not exceed the price cap and is not below the floor price for the relevant product.

On the other hand, retailers are required to sell petroleum products at the price with a subsidy as indicated lest legal action will be taken against any retailer who fails to comply with these instructions.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Notice: ob_end_flush(): failed to send buffer of zlib output compression (0) in /home/dailynew/public_html/wp-includes/functions.php on line 5279