DAR ES SALAAM: THE latest fuel price cut, announced on Tuesday, is expected to provide relief to motorists and boost economic activities across multiple sectors.
A drop in fuel prices for September can greatly impact production targets, allowing businesses to better balance their income and expenditures more efficiently.
According to Energy and Water Utilities Regulatory Authority (EWURA), statement highlighted that the August Free on Board prices of petrol, diesel and kerosene decreased on average by 7.68 per cent, 6.22 per cent and 6.20 per cent, respectively.
"The petroleum products cap prices for September are based on FOB prices that prevailed in August this year," said Dr James Mwainyekule, EWURA's Director General in a statement.
He said the premiums for the importation of petroleum products decreased by an average of 10.55 per cent for petrol and 13.64 per cent for diesel and an increase in premium by an average of 3.37 per cent for kerosene at Dar es Salaam Port, a decrease in premiums of 4.46 per cent for petrol and diesel at Tanga Port and decrease in premiums by an average of 14.98 per cent for petrol and diesel at Mtwara Port.
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The FOB prices and premiums for importation of petroleum products are quoted in the US dollar though payment can be done in USD or any other major foreign currencies.
He said the applicable exchange rate for September decreased by 0.91 per cent. Motorists in Dar es Salaam will pay 3,140/- per litre of petrol compared to 3,231/- in the previous month.
The prices of diesel fell to 3,011/- per litre compared to 3,131/- while kerosene price is 3,121/- compared to 3,257/- per litre traded in the preceding month.
For wholesale prices, petrol in Dar es Salaam is 3,008.20/- per litre compared 3,099.16/- in the previous month, diesel price is 2,879.26/- compared to 2,879.26/- in the preceding month.
Motorists in Kyerwa (Ruberwa) in Kagera Region will dig deeper in their pockets by paying the highest prices for petroleum products than other places.
For example, petrol prices is 3,378/- per litre, 3,249/- per litre for diesel and 3,359/- per litre for kerosene. Lower diesel prices will be especially beneficial to industries that rely heavily on transportation and logistics, such as manufacturing, agriculture and distribution.
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With reduced fuel expenses, companies can cut operational costs, improve profit margins and pass some savings on to consumers.
This, in turn, could lead to lower prices for goods and services, providing a boost to household budgets. Additionally, the price reduction is likely to enhance economic stability by easing inflationary pressures.
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As fuel is a key driver of transportation and production costs, its lower price may contribute to stabilising the cost of living. The overall reduction in expenses for businesses and consumers alike could create a more favourable environment for investment and growth.
Moreover, the drop in fuel prices will offer further support for the government's broader economic objectives by stimulating consumption and increasing productivity. As businesses face lower operating costs, they are better positioned to expand, hire more workers and accelerate economic recovery.
The move aligns with efforts to promote sustainable growth and improve the country's economic outlook.
