Tanzania: Govt Subsidy Continues to Cushion Fuel Prices

THE government's subsidy on fuel has continued to bring relief to consumers as Energy and Water Utilities Regulatory Authority (EWURA) has announced yet another slight drop in prices in the local market for the month of February.

In the public notice on Tuesday, the EWURA announced the indicative prices for petroleum products for this month.

The statement, signed by the authority's Director General Modestus Lumato, said retail pump prices of diesel and kerosene imported through Dar es Salaam Port have decreased by 190/- and 142/- per litre, respectively, compared to the prices that were published on January 4th 2023 while the retail price of petrol remain unchanged.

This means at a retail prices petrol, diesel and kerosene in Dar es Salaam will be sold at 2,819/-3,105/- and 3,061/- respectively, according to EWURA.

The statement said for Northern regions (Tanga, Kilimanjaro, Arusha, and Manyara), retail prices of petrol and diesel for February 2023 will continue to be the same as those that were published on January 4th, 2023. This is due to the fact that there were no new consignment of the petroleum products that were received through Tanga Port in January 2023.

"Due to depletion of kerosene at Tanga storage terminal, Petrol Station Operators in the Northern regions are advised to source kerosene from Dar es Salaam. Therefore, the retail prices of kerosene for those regions are based on the cost of the product received through Dar es Salaam Port and the transport cost to the respective regions," reads the statement.

For northern zone, retain prices of petrol, diesel and kerosene will go for 3,036/-, 3,397/- and 3,145/- respectively.

For Southern regions (Mtwara, Lindi, and Ruvuma), retail prices of petrol and diesel for February 2023 decreased by 118/- and 160/- per litre, respectively, compared to the prices published on January 4th, 2023.

The statement said due to unavailability of kerosene at Mtwara storage terminals, Petrol Station Operators in the Southern regions are advised to source kerosene from Dar es Salaam. Therefore, the retail prices of kerosene for those regions are based on the cost of the product received through Dar es Salaam port and the transport cost to the respective regions.

For the past seven months since the government announced the monthly 100bn/- for fuel products prices in the local market persistently been going down.

Data indicates that the pump prices for petrol has decreased by an average of 14 per cent during the period for petrol imported through three major ports of Dar es Salaam, Tanga and Mtwara.

From August last year to January this year, prices after subsidy for petrol imported through Dar es Salaam Port reduced from 3410/- to 2819/-, equivalent to 17.3 per cent.

During the same period, prices of petrol imported through Tanga Port decreased from 3435/- to 2989/-, equivalent to 13 per cent.

Retail price for petrol imported via Mtwara Port has gone down from 3393/- in August last year to 2993/- last month, equivalent to 11.8 per cent.

However, figures show that diesel has maintained a slight decrease of prices by an average of 0.55 per cent for two ports of Dar es Salaam and Tanga.

EWURA stressed that the price boards should clearly show prices charged, discounts offered as well as any trade incentives or promotions on offer.

"Consumers are encouraged to purchase from stations that sell products at the most competitive prices and offer better services," it said.

The authority warned that legal action will be taken against any retailer who fails to comply with the instructions.

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