Fuel prices go up after removal of subsidies

Dar es Salaam. Retail prices of petrol and diesel imported through the Dar es Salaam port have increased by Sh90 and Sh24 per litre respectively.

According to the new fuel cap price released by the Energy and Water Utilities Regulatory Authority (Ewura), which is effective from May 3, 2023.

With the new rates, motorists in Dar es Salaam will buy petrol at Sh2, 871 per litre, from Sh2, 781 the previous month, whereas diesel will cost Sh2, 847 from Sh2, 871.

While the fuel prices go up in Dar es Salaam, the situation is different in the northern regions, including Tanga, Kilimanjaro, Arusha, and Manyara where the prices of petrol and diesel will remain as they were in April at Sh2, 756 and Sh2, 900, respectively.

Therefore, the retail prices for those regions are based on the cost of the product received through Dar es Salaam port and the transport costs to the respective regions.

For the fuel imported through the Mtwara port, which serves southern regions (Mtwara, Lindi and Ruvuma) the retail price of petrol and diesel will also remain as it was in April because there were no new imports received.

The most expensive selling point remains Kyerwa district in Kagera region where petrol now costs Sh3,109 and diesel is sold at Sh3,109, this has been attributed to the distance from the port where fuel is imported.

The regulator said that the increase and change in the price of fuel in the country has been caused by changes in the global market and other reasons.

"These price changes are due to changes in oil prices in the global market, transportation costs (BPS Premium) and the value of the shilling compared to the US dollar," Ewura says in a statement.

The new price comes after the government removed the fuel subsidy that was reducing fuel inflation.