Fuel traders still make a killing despite prices drop
Dar es Salaam. The government said yesterday some regions in the country were not benefitting from a drop in a global market price of the fuel, calling upon the authorities to take immediate measures to address the trend.
Briefing members of the media fraternity, the Industry and Trade minister, Mr Innocent Bashungwa, said fuel prices remained the same in some regions, despite the directive from the authorities.
He directed the Energy and Water Utilities Regulatory Authority (Ewura) and the Fair Competition Commission (FCC) to launch a countrywide crackdown on traders selling fuel at prices that did not reflect that of the world market.
He also warned importers who were hoarding fuel with expectations that the price would go up in the near future, saying they were risking having their operating licences being revoked. He added that the government would use the Ewura Act, FCC Act and Sabotage Act to ensure unscrupulous traders faced the full wrath of the law. “There are some businesspersons who are purchasing fuel in the decreased price during this Covid-19 malady, but there are complaints that prices in some regions have remained the same. This is unacceptable,” noted Mr Bashungwa.
“We want all regions to benefit from the fall in the global market price.”
To address the challenge of variations in prices in various regions, he said his meeting with various government institutions agreed to improve the Bulk Procurement System (BPS) so that the country’s system could easily adjust to any changes in the global market.
“There is no reason for delay in enjoying benefits from the fall in global market price,” he said.
He directed various institutions led by Ewura, FCC and the Tanzania Revenue Authority (TRA) to take the proposals to the Energy ministry by yesterday. Noting that his responsibility as the Industry and Trade minister was to promote trade and industries, he called on businesses to adhere to the country’s laws.
Ewura acting director general Godfrey Chibulunje said variations in prices in various regions were triggered by low demand for oil imported through Tanga and Mtwara ports compared to that of Dar es Salaam.
