Tanzania has announced a reduction in fuel prices, effective immediately, due to a decline in global market prices and a depreciation of the applicable exchange rate. The Energy and Water Utilities Regulatory Authority (EWURA) has decreased the cap prices for petroleum and diesel by 36/- and 23/-, respectively. This adjustment is expected to lower transportation costs, ease inflationary pressures, and boost overall economic activity.
The reductions are driven by a 0.2% decline in FOB prices for petrol, 5.5% for diesel, and 3.5% for kerosene, coupled with a 3.96% depreciation in the applicable exchange rate. These factors have collectively contributed to the downward adjustment in fuel prices for September, reflecting responsiveness to both global market trends and currency fluctuations.
However, premiums at the Dar es Salaam port have risen significantly, increasing by an average of 20.73% for petrol, 7.75% for diesel, and 2.62% for kerosene. In contrast, premiums at the Tanga port have declined by an average of 12.66% for both petrol and diesel, while no changes were reported at the Mtwara port.
The EWURA has issued a directive reminding all retailers and wholesalers to adhere strictly to the stipulated fuel prices, warning that legal action will be taken against non-compliance. The overall decline in domestic fuel prices reflects a combination of falling global market prices and reduced foreign exchange conversion costs.
The new prices are as follows: at the Port of Dar es Salaam, petrol is now sold at 2,807/- per litre, down from 2,843/- in August, and diesel is priced at 2,754/-, a marginal decrease from 2,777/-. At the Port of Tanga, retail prices have declined, with petrol now at 2,868/- per litre and diesel at 2,816/-. The Port of Mtwara shows mixed trends, with petrol prices dropping to 2,899/- from 2,935/- and diesel declining to 2,847/- from 3,020/-.
These variations across ports highlight regional disparities in fuel pricing, influenced by factors such as logistics costs, import tariffs, and supply chain dynamics. The modest decreases in petrol and diesel prices may ease transportation and production costs in affected regions, while the slight increases in kerosene prices could impact low-income consumers who rely heavily on this fuel. The reduced fuel prices are expected to have a positive impact on the economy, and the EWURA will continue to monitor the situation to ensure that the benefits are passed on to consumers.
