23 November 2017

Tanzania: Charcoal Prices Up

Dar es Salaam — Heavy rain and high charcoal charges have increased the commodity prices.

In urban areas such as Dar es Salaam, prices have risen by a half since March.

The wholesale price of charcoal for a 100-kilo bag climbed to Sh70,000 in Dar es Salaam since March.

Last month, the same quantity of charcoal was sold at an average of Sh45,000. The retail charcoal prices increased to Sh2,500 in a container that cost Sh1,000 in March.

It is estimated that, more than 90 per cent of urban residents use wood fuel as their main source of cooking energy.

Mr Abdallah Hammad, a charcoal wholesaler at Ubungo-Kibangu, attributes the price rise to high charges and heavy rain. He said charcoal taxes increased from Sh15, 000 to Sh26, 000 a 100-kilo bag between February and November 2017.

Costs of transporting the commodity rose for a 100-kilo bag to Sh10, 000 in November from Sh7,000 in March.

"Although the government discourages Tanzanians from using charcoal and instead opting for gas, a large number of Dar residents still use charcoal," he said.

According to the Environmental Activity and Sector Registry 2016, 90 per cent of middle-income households use wood fuel while only one uses gas.

The Ministry of Natural Resources and Tourism has been discouraging the charcoal consumption, citing environmental concerns.


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