This archive report was first published on 5 July 2021.
July 1 marked the beginning of a new era for fuel prices in Tanzania, with the highest monthly increase in four months. The new Finance Act, which came into effect on this date, has led to a significant hike in petroleum product prices.
According to the Energy and Water Utilities Regulatory Authority (Ewura), retail prices of petrol, diesel, and kerosene have increased by 6.94%, 6.87%, and 8.38%, respectively, compared to June. Wholesale prices have also seen a substantial rise, with petrol prices increasing by 7.34%, diesel by 7.3%, and kerosene by 8.94%.
The latest monthly cap prices for petroleum products reflect a Tsh100 ($0.043) increase in Fuel Levy per litre of petrol and diesel, as well as a similar Tsh100 increase in Petroleum Fee for each litre of kerosene, as specified in the new legislation.
Interestingly, prices in Dar es Salaam remain cheaper than the rest of the country, thanks to robust shipment stocks at its port and the absence of transport costs, which upcountry regions have to incur.
As of now, wholesale prices in the commercial capital stand at Tsh2,275.9 ($0.98) for petrol, Tsh2,086 ($0.899) for diesel, and Tsh1,992.51 ($0.859) for kerosene. Retail prices in Dar es Salaam have also increased, with petrol now priced at Tsh2,405 ($1.037) per litre, diesel at Tsh2,215 ($0.955) per litre, and kerosene at Tsh2,121 ($0.915) per litre.
Prices in the northern and southern regions, which are served by the Tanga and Mtwara ports respectively, have also seen a slight increase, while prices in regions served by Dar, including the administrative capital Dodoma, have varied according to distance from the coast.
According to Ewura, apart from changes in Fuel Levy and Petroleum Fee, changes in local prices are also due to changes in the world oil market prices and BPS premiums.
The government-run agency has advised fuel station operators in the northern and southern regions to source kerosene from Dar es Salaam due to depleted stocks of the product at the Tanga and Mtwara port storage terminals, necessitating further upward price tweaks of that particular product due to transport costs.
