Diesel prices go up 5.3 per cent

By Yakobe Chiwambo

Energy and Water Utilities Regulatory Authority (Ewura)

Commodity prices are very likely to surge following a slight increase in diesel pump price by 109/- per litre, an equivalent to or 5.63 percent.


The surge is based on the fact that most of the goods transported to their point of consumption by trucks, many of which use diesel.

According to Energy and Water Utilities Regulatory Authority (Ewura), retail prices for petrol, diesel and kerosene per litre have been capped upwards by 11/-, 109/- and 11/- respectively with effects from yesterday.

Ewura says the changes have been necessitated by change in prices of petroleum in the world market and depreciation of the Tanzanian shilling against US dollar.

“The retail and wholesale prices for petrol, diesel and kerosene in Tanzania Mainland have been raised compared to the last published prices of March 5, this year. The retail prices for petrol, diesel and kerosene have increased by 11/- per litre (0.48 percent), 109/- (5.36 percent), and 11/- (0.50 percent), respectively,” the Ewura statement said.

“The wholesale prices for petrol, diesel and kerosene have also increased by 10.67/- per litre (0.51 percent), 109/- (5.63 percent) and 11.04/- (0.57 percent) respectively,” it added.

Tanzania Consumer Society (TCS) Executive Director Bernard Kihiyo, told The Guardian over the phone yesterday that the increase in diesel can have an impact on prices commodity transportation.

“The increase in diesel prices is very likely going to affect the prices – pushing them up – but since they have only gone up by 109/- per litre, I don’t think the impact will be high because at times the prices of fuel are adjusted downwards. So, I believe this can be absorbed by transporters themselves,” Kihiyo said.

According to Kihiyo, the adjustments made on the fuel prices cannot be avoided since the prices are determined by the world market bulky prices as well as other factors out of the government’s reach.

“We can only avoid such fluctuations if we strike own oil of which we believe we shall soon. Otherwise, for process of imports, we have little control over them,” the Executive Director noted.

For his part, Tanzania Association of Truck Owners (TATOA) spokesperson Elis Lukumay, told this paper that diesel is an important element in transportation business and that surge in the price, if much, might have a direct translation in the prices of commodities.

It is obvious that the rise announced yesterday will push the transportation costs upwards and hence shove the prices for goods up, he said.
Prices of fuel are regulated and do fluctuate after sometime depending on a number of things, including the world bulk prices and the exchange rate.
In line with the prevailing sector legislation, prices of petroleum products are governed by rules of supply and demand.

“Ewura shall continue to encourage competition in the sector by making available information on petroleum products pricing, including price cap. This information on prices is intended to enable stakeholders to make informed decisions on petroleum prices at any particular time,” Ewura said.

However, oil marketing companies are free to sell their products at a price that gives them competitive advantage, provided that such price does not exceed the price cap for the relevant product. 

SOURCE: THE GUARDIAN