Economy to save Sh232m daily as Ewura cuts prices

Dar es Salaam. Tanzania’s economy will save over Sh232 million daily for a one month starting today as the energy regulator braved political machinations to cut pump prices for petroleum products in response to declining global prices.

Tanzania is estimated to be consuming around three million litres of petrol per day, five million litres of diesel and 300,000 litres of kerosene.

The Energy and Water Utilities Regulatory Authority (Ewura) has cut prices of petroleum products effective today, with petrol retailing at Sh67 per litre.

Similarly, consumers of kerosene, widely used as a fuel in industry and households, will also be smiling as Ewura cuts the prices by Sh37 while those using diesel will receive a minimal reprieve of Sh4 per litre. Taking the consumption estimates as the basis, the economy will be saving at least Sh201 million, Sh20 million and Sh11.1 million from petrol, diesel and kerosene respectively.

The amount to be saved could be more depending on the imported volumes with pundits pointing to the fact that demand will be high as the country heads to the General Election in the next 18 days.

“Retail cap prices for October 2015, for petrol, diesel and kerosene compared with those of September, have decreased by Sh67/litre, Sh4/litre and Sh37/litre respectively…. These movements are to a larger extent attributed to changes in prices of petroleum products in the world market,” Ewura says in a statement published in various newspapers.

With the new cap prices, Dar es Salaam residents will now be paying Sh2,086 to purchase a litre of petrol while that of diesel and kerosene will retail at Sh1,828 and Sh1,733 until a new revision is announced during the first Wednesday of November 2015. Uvinza (Lugufu) residents will be purchasing a litre of petrol at Sh2,329, down from Sh2,396 while that of diesel will cost them Sh2,071, a drop from Sh2,075 whereas a litre of kerosene will cost them Sh1,976 from Sh2,013 as part of the money will cater for transport costs to the location. Global oil prices weakened yesterday.

Brent North Sea crude for delivery in November dipped seven cents to stand at $49.18 a barrel in afternoon London deals.

US benchmark West Texas Intermediate for delivery in November shed 30 cents to $45.96 a barrel compared with Monday’s close. However, Tanzania imports refined products. This explains some variations in pricing.