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Relief as fuel prices keep plummeting

TANZANIA: DOMESTIC prices of petrol products have dropped for the third month in a row, bringing relief to consumers, especially motorists.

Statistics indicate that retail prices of petrol and diesel imported through Tanzania’s three major seaports of Dar es Salaam, Tanga and Mtwara declined at an average of 8 per cent over the three-month period.

Prices for petrol and diesel imported through the Dar es Salaam, Tanga and Mtwara ports declined at an average of 7.95 per cent, 7.7 per cent and 8.7 per cent respectively.

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For petrol imported through the principal port of Dar es Salaam, the retail price has gone down from 3231/- per litre in August to 3011/- this month, showed a statement released yesterday by the Energy and Water Utilities Regulatory Authority (EWURA).

Also, the price of diesel imported through Dar port has dropped from 3131/-, to 2846/-, per litre in the corresponding period.

On the other hand, the price of petrol imported via Tanga Port decreased to 3016/- per litre this month comparing to 3229/- per litre in August.

The price of diesel imported through Tanga Port has also nosedived from 3138/-, in August to 2859/-, this month.

The EWURA’s statement, signed by Director General Dr James Andilile, shows that a litre of petrol imported through the Mtwara Port would be sold at 3016/- per litre, this month as compared to 3304/- per litre in August.

Furthermore, the diesel price went down to 2862/- per litre this month from 3140/- last August.

The EWURA has attributed the decline in prices to several factors, including the decline in Free on Board (FOB) price whereby comparing to August 2024, the September FOB prices of petrol, diesel and kerosene decreased by 7.42 per cent, 9.15 per cent, and 8.23 per cent, respectively.

Also, in October 2024, the premiums increased by an average of 2.63 per cent for petrol and decreased by an average of 16.58 per cent for diesel and by 3.39 per cent for Kerosene at Dar es Salaam Port; an increase of premiums of 11.56 per cent for petrol and diesel at Tanga Port; and an increase in premiums of 9.56 per cent for petrol and diesel at Mtwara Port.

The FOB prices and premiums are quoted in major foreign currencies including the US dollar.

The applicable exchange rate for October 2024 decreased by 2.67 per cent.

“Retailers and wholesalers are required to sell petroleum products at indicated prices.

Legal action will be taken against any retailer or wholesaler who fails to comply with these instructions,” the authority warned.

ALSO READ: EWURA warns against illegal fuel storage, sale

EWURA also reminded wholesalers, retailers and the general public that in line with the prevailing sector legislation (Petroleum Act, Cap. 392 Section166), prices of petroleum products are governed by rules of demand and supply.

However, EWURA shall continue to encourage competition in the sector by making petroleum product pricing information available including cap prices.

Oil Marketing Companies are free to sell their products at a price that gives them a competitive advantage provided that, such price does not exceed the price cap and is not below the floor price for the relevant product as it is computed according to the EWURA (Petroleum Products Prices Setting) Rules that were gazetted through the Government Notices No. 57 published on January 28, 2022 and the EWURA (Petroleum Products Prices Setting) (Amendment) Rules that were gazetted through Government Notice No. 761A published on October 30, 2023 and Amended Bulk Procurement Regulations of 2024.