Tanzania: New Taxes Spark Higher Fuel Prices in Tanzania

Petroleum product prices in Tanzania registered their highest monthly increase in four months starting July 1 as amendments outlined in the new Finance Act came into effect.

Retail prices of petrol, diesel and kerosene went up by 6.94 percent, 6.87 percent and 8.38 percent, respectively, compared with June while wholesale prices shot up by 7.34 percent (petrol), 7.3 percent (diesel) and 8.94 percent (kerosene).

The latest monthly cap prices for petroleum products announced by the Energy and Water Utilities Regulatory Authority (Ewura) last week reflected a Tsh100 ($0.043) increase in Fuel Levy per litre of petrol and diesel and a similar Tsh100 increase in Petroleum Fee for each litre of kerosene as specified in the new legislation.

Prices in Dar es Salaam remained cheaper than the rest of the country thanks to robust shipment stocks at its port compared with the Tanga and Mtwara ports plus the absence of transport costs which upcountry region have to incur.

Pump prices

Wholesale prices in the commercial capital now stand at Tsh2,275.9 ($0.98) for petrol, Tsh2,086 ($0.899) for diesel and Tsh1,992.51 ($0.859) for kerosene. The retail price for petrol in Dar is up from Tsh2,249 ($0.97) to Tsh2,405 ($1.037) per litre, diesel up from Tsh2,073 ($.0894) to Tsh2,215 ($0.955) per litre, and kerosene up from Tsh1,957 ($0.844) to Tsh2,121 ($0.915) per litre.

Prices in the northern and southern regions, which are served by the Tanga and Mtwara ports respectively, went up slightly more while prices in regions served by Dar, including the administrative capital Dodoma, also varied upwards according to distance from the coast.

"Apart from changes in Fuel Levy and Petroleum Fee, changes in local prices are also due to changes in the world oil market prices and BPS premiums," Ewura said.

The government-run agency advised fuel station operators in the northern and southern regions to source kerosene from Dar es Salaam due to depleted stocks of the product at the Tanga and Mtwara port storage terminals, necessitating further upward price tweaks of that particular product due to transport costs.

The last time fuel prices dropped in Tanzania was in January this year when retail prices in Dar es salaam stood at Tsh1,834 ($0.79) for petrol, Tsh1,695 ($0.73) for diesel and Tsh1,650 ($0.71) for kerosene.

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