Fuel prices rise despite scraping of levies

By Josephine Christopher

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Dar es Salaam. Retail prices of fuel in Tanzania have risen despite the government intervention by scrapping off Sh100 of levies.

Motorists in Dar es Salaam will with effect from March 2, buy a litre of petrol at Sh2, 540 from Sh2, 480, while a litre of diesel will cost Sh2, 403 a litre from Sh2, 338.

Meanwhile, retail price for a litre of kerosene will cost Sh2, 208 a litre up from Sh2, 291 in February.

The new prices which were issued on Tuesday, March 1, by the Energy and Water Utilities Regulatory Authority (Ewura) take effect from Wednesday 2, 2022.

Speaking today, Ewura’s Director General Godfrey Chibulunje, said the prices are actually a relief comparing to what actual prices were supposed to be.

This, he said was due to the government intervention that waived off Sh100 on each litre of petroleum products.

“If the government had not intervened and assisted,  the petroleum products imported through Dar es Salaam port prices would have been Sh2, 640 for petrol, Sh2,503 for a litre of diesel and  Sh2,308 for kerosene,” he said.

Mr Chibulunje stated that prices will also increase for the products imported through Tanga and Mtwara ports.

At the Tanga port, the price of petrol will now be at Sh2, 563 per litre, diesel will be sold at Sh2, 484 while at Mtwara a litre of petrol will cost Sh2, 577 and diesel will be sold at Sh2, 530.

Oil prices have been rising in the world market as concerns rise regarding the supply disruptions due to the Russia invasion of Ukraine.

With this in mind the government through the ministry for Energy this week signed a regulation amendment to allow a waiver of Sh100 to the prices of fuel for the next three months.

“In response to the sustained rise in global prices, the Energy Ministry is removing a total of Sh100 in various levies on the price of every litre of petrol diesel and kerosene that was to be paid by consumers for a period of three months starting March, 2022…,” reads a statement from the Energy Ministry.

It states that though the decision will see the government losing Sh30 billion per month in revenue, the government found the decision as necessary to protect Tanzanian consumers against the negative effects of the rising global prices.