Tanzania government announces Sh100 billion fuel subsidy

Tuesday May 10 2022
Makamba pix

Energy minister January Makamba speaking in Parliament on Tuesday, May 10

By Paul Owere

Dodoma. The Minister of Energy, January Makamba has on Tuesday May 10, said the Government has provided a subsidy of Sh100 billion to reduce fuel prices in the country.

Speaking in Parliament Mr Makamba said the subsidy will reduce government spending for the remainder of 2021/22 fiscal year.

He said the subsidy would not affect the ongoing development projects.

“Our President, Samia Suluhu Hassan has instructed that the next financial year was far away, therefore recovery should be sought sooner. Therefore, as an emergency measure, in this period before we reach the new financial year, the Government will dedicate Sh100 billion to reduce oil prices in the country.

"The Sh100 billion subsidy will take effect from June 1, 2022. This is due to the fact that wholesalers have already paid for the fuel costs included in the May 2022 prices and petrol stations have already purchased fuel at the current price,”said Makamba.

On Sunday night President Samia Suluhu Hassan directed ministries and authority responsible to address immediately fuel price hike and come up with a quick solution.

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The President was speaking at an emergence meeting held at State House Dar es Salaam in the late hours of Sunday night.

The meeting was attended among others by Prime Minister Kassim Majaliwa, Energy minister January Makamba, and Finance minister Mwigulu Nchemba.

Others were the Commissioner General of TRA Alphayo Kidata and permanent secretaries from Finance and Energy ministries.

Fuel prices in Tanzania have crossed the Sh3, 000 mark across all three products (petrol, diesel, and Kerosene) in Dar es Salaam, Tanga and Mtwara, according to the latest price list released by the Energy and Water Utilities Regulatory Authority (EWURA).

The most expensive selling point remains Kyerwa district in Kagera region on the border with Rwanda and Uganda where petrol now costs Sh3, 385, diesel sh3,495 and kerosene Sh3,350  per litre.