Dodoma — MOTORISTS in the country are experiencing a reprieve following a 36/- and 23/- reduction in cap prices for petroleum and diesel, respectively, which is expected to lower transportation costs, ease inflationary pressures and boost overall economic activity.
The new cap prices were announced on Tuesday by the Energy and Water Utilities Regulatory Authority (EWURA).
According to a statement from EWURA's Director General, Dr James Andilile, the reductions are driven by declines in FOB prices down 0.2 per cent for petrol, 5.5 per cent for diesel and 3.5 per cent for kerosene coupled with 3.96 per cent depreciation in the applicable exchange rate for the period.
These factors collectively contributed to the downward adjustment in fuel prices for this September, reflecting responsiveness to both global market trends and currency fluctuations.
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Premiums at the Dar es Salaam port have risen significantly, increasing by an average of 20.73 per cent for petrol, 7.75 per cent for diesel and 2.62 per cent for kerosene, while premiums at the Tanga port declined by an average of 12.66 per cent for both petrol and diesel.
No changes were reported at the Mtwara port. In response to these adjustments, the EWURA has issued a directive reminding all retailers and wholesalers to adhere strictly to the stipulated fuel prices, warning that legal action will be taken against non-compliance.
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The overall decline in domestic fuel prices reflects a combination of falling global market prices and a 3.96 per cent reduction in foreign exchange conversion costs as of September.
However, this positive trend is partially offset by rising import costs at the Dar es Salaam port, where the premiums for petrol, diesel and kerosene have increased by 20.73 per cent, 7.75 per cent and 2.62 per cent respectively, highlighting regional cost disparities that may influence supply chain efficiency and final retail prices.
According to the statement, prices at the Port of Mtwara remain unchanged, while the Port of Tanga has seen a notable decrease of 12.66 per cent for both petrol and diesel.
Specifically, fuel prices at the Port of Dar es Salaam have adjusted slightly: Petrol is now sold at 2,807/- per litre, down from 2,843/- in August and diesel is priced at 2,754/-, a marginal decrease from 2,777/-. Conversely, kerosene consumers face a small price increase, with costs rising to 2,774/- per litre from 2,768/.
At the Port of Tanga, retail prices have declined, with petrol now at 2,868/- per litre (down from 2,904/-) and diesel at 2,816/- (down from 2,839/-), while kerosene prices have slightly increased to 2,835/- from 2,829/-. Meanwhile, the Port of Mtwara shows mixed trends: Petrol prices dropped to 2,899/- from 2,935/-, diesel declined more sharply to 2,847/- from 3,020/-, but kerosene prices edged upward slightly to 2,866/- from 2,860/-.
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These variations across ports highlight regional disparities in fuel pricing influenced by factors such as logistics costs, import tariffs and supply chain dynamics.
The modest decreases in petrol and diesel prices may ease transportation and production costs in affected regions, whereas the slight increases in kerosene prices could impact low-income consumers who rely heavily on this fuel.
