Fuel prices rise by 5pc in one year

The steady fuel prices increase in the one year period is observed from statistics gathered on fuel price changes that took place between April 2013 and March 2014. PHOTO|FILE 

By Sturmius Mtweve, The Citizen Reporter

In Summary

The steady fuel prices increase in the one year period is observed from statistics gathered on fuel price changes that took place between April 2013 and March 2014.

Dar es Salaam. Even though there hasn’t been a public uproar over fuel prices in the country recently, statistics gathered by The Citizen on Saturday from the Energy and Water Utilities Regulatory Authority (Ewura) reveal a steady pump price increase over the past one year.

The steady fuel prices increase in the one year period is observed from statistics gathered on fuel price changes that took place between April 2013 and March 2014.

From the figures obtained, it shows that over the past one year fuel (petrol, diesel and kerosene) prices have kept rising –now reaching an average of five per cent increase.

Interestingly, even though the price changes may have had a pinching effect on motorists who are now being forced to dig deeper from their wallets, the hiking hasn’t caused any public outcry as the changes have remained gradual but consistent. Price caps published by the regulator by April last year shows that the fuel prices in Dar es Salaam region stood at Sh2,098, Sh1,970 and Sh2023 for petrol, diesel and kerosene respectively. Since then, prices have been increasing steadily nation- wise. For example, according to the recent (April 2, 2014) price indicatives as issued by Ewura, prices in the same region now stand at Sh2,198 (4.5 per cent increase), Sh2,149 (8.3 per cent) and Sh2,062 (1.9 per cent) respectively.

But the situation is likely to adversely affect more upcountry regions than major towns due to transport and logistical challenges associated with sending the service in their areas.

Currently, the highest fuel prices are found in Kigoma where the cap price for fuel as per the regulator is Sh2,441/ litre, Sh2,392/litre and Sh3,305/litre for petrol, diesel and kerosene respectively at Uvinza (Lugufu).

The current prices in the region (Kigoma) are contrary to Sh2,330/litre, Sh2,213/litre, and Sh2,266/litre for petrol, diesel and kerosene prices recorded by April 2013.

Comparing the effect of fuel price hikes in major towns and upcountry regions, the situation is more likely to adversely affect more upcountry regions which have always suffered high fuel prices. These include Kigoma,Bukoba, Geita, Mwanza and Katavi regions.

Change of prices of petroleum products in the world market and depreciation of the Tanzanian shillings against the American dollar, are key drivers of the changes being realized in fuel prices in the country, according to Ewura.

Speaking with The Citizen on Saturday, Mr Titus Kaguo, Ewura spokesperson reiterated that prices of fuel in the country have kept rising because of the depreciating Tanzanian shilling –which has now reached Sh1640 as well as fuel price increases in the world market.

“In fact we are trying our best to control fuel prices in the country; otherwise, things up to this moment could have been even worse. For example for about nine years now, the price of fuel in Dar es Salaam has not reached Sh2,200,” Mr Kaguo told The Citizen on Saturday.

Worldwide, reports indicate that 2014 may be a year with high fuel prices throughout 2015 as the Organization of the Petroleum Exporting Countries (Opec) has raised its forecasts for world oil demand.