THE country's pump oil price has dropped to a four-month low thanks to slumping global market prices driven by coronavirus pandemic.
The retail prices for petrol, diesel and kerosene dropped between 2.0 and 10 per cent for consignment passing through Dar es Salaam and Tanga ports.
However, the prices for the consignment passing through Mtwara port remained the same since there were no new deliveries.
Energy and Water Utilities Regulatory Authority (EWURA), said in a statement yesterday that pump price for consignment through Dar port dropped to between 5.0 and 10 per cent.
"The decline in local fuel prices are mainly due to changes in the world oil market prices and BPS [Bulk Procurement System]," the statement said.
Monetary wise the pump prices went down by 116/-for a liter of petrol, 165/- for diesel and kerosene 193/- against last month prices.
The statement showed that for Tanga delivery, prices dropped by between 2.0 per cent and 4.5 per cent where petrol slides by 86/-a liter, diesel 56/-and kerosene 85/-.
Globally the oil prices started decline since the beginning of the year after crashing from 59.32 US dollars at end of January to 22.76 US dollars a barrel at end of last month, according to Brent Futures.
The oil price collapse are attributed to consumption that went down by at least 25per cent compared to last year levels of 100 million barrels per day (b/d), according to analysts at Eurasia Group, with severe restrictions on global movement and most retail in lockdown.
Brent futures have collapsed more than 65 per cent over the first three months of a year, registering their worst-ever quarter through our history to 1990, according to data compiled by CNBC. Brent also recorded its worst-ever monthly performance in March, falling over 54 per cent.
A public health crisis has meant countries around the world have effectively had to shut down, with many governments imposing draconian measures on the daily lives of hundreds of millions of people.
The restrictions have created an unprecedented demand shock in energy markets, ramping up the pressure on companies and governments reliant on crude sales.
To date, more than 860,000 people have contracted COVID-19 worldwide, with 42,345 deaths, according to data compiled by Johns Hopkins University.