Over 15 taxes and levies a major reason for high fuel prices in Tanzania

Media/news company

Mwananchi Communications Limited

Ewura attributed the upward trajectory to global crude prices.
But then later in the evening the same regulator made a sudden turn around by suspending the new prices until further notice.
However as motorists wait for the latest prices , The Citizen has learnt that taxes, levies and charges imposed on petroleum products are a major reason for the high prices.
Before a liter of petrol reaches the final consumer, it will attract more than 15 different taxes, levies and charges which make up over 40 percent of the total cost.
The taxes include Wharfage, Railway Development levy, Customs processing fees, Weights and Measures fee, Tanzania Bureau of Standards charges, Tasac Charges, Ewura Fee, Fuel Marking, Demurrage costs, and Surveyors’ costs.
Others are Financing Cost, Evaporation losses, Fuel Levy, Excise Duty, Petroleum fee, charges payable to executive agencies, and Service levy payable to local government authorities (Wholesale) and service levy payable to local government authorities.
For example during the month of July, the CIF (Cost Insurance and Freight) for a liter of petrol that arrived at the port of Dar es Salaam was Sh1,162.
The final retail price after all the other margins have been factored in brought the costs to Sh2,405.
Tanzania imports 100 percent of the petroleum products in refined form.