Fuel consumers in Tanzania are bracing for a financial strain as a substantial hike in fuel prices takes effect this month. The primary factors driving this increase include rising global fuel market rates and escalating export charges.
In the latest announcement by the Energy and Water Utilities Regulatory Authority (Ewura), fuel prices have sharply risen across all categories. In Dar es Salaam, the price for a litre of petrol is now Tsh3,213 ($1.29), showing an increment from the previous Tsh3,199 ($1.28).
However, diesel has witnessed the steepest ascent. From an earlier rate of Tsh2,935 ($1.17) per litre, it now trades at Tsh3,259 ($1.30), marking an increase of Tsh324 ($0.13) per litre. Kerosene hasn’t been left behind, with its price jumping from Tsh2,668 ($1.07) to Tsh2,943 ($1.18), translating to a Tsh275 ($0.11) increase per litre.
This trend isn’t just limited to Dar es Salaam. Petrol imported via the Mtwara port is now priced at Tsh3,285 ($1.31) per litre, up from Tsh3,271 ($1.31) recorded in August. The corresponding figures for diesel are Tsh3,332 ($1.33) and Tsh3,008 ($1.20), and for kerosene, it’s Tsh3,016 ($1.21) from Tsh2,714 ($1.09).
For imports channelled through the Tanga port, petrol now stands at Tsh3,259 ($1.30) a litre, an increase from Tsh3,245 ($1.30) in August. Diesel is now priced at Tsh3,305 ($1.32) up from Tsh2,981 ($1.19) while kerosene has moved to Tsh2,989 ($1.20) a litre from Tsh2,740 ($1.10).
These revised rates are in effect from September 6, 2023.
Attributing the price increase, Ewura highlighted a 21% surge in the global fuel market rates. Additionally, export charges have seen a 62% hike. Political decisions from major oil-producing countries under OPEC+ further intensify the situation.
It’s noteworthy to mention that back in May 2022, the government unveiled a Tsh100 billion ($40 million) subsidy aiming to reduce fuel prices within the nation. However, by January, this initiative was discontinued. Subsequent to this cessation, Ewura observed fuel inflation, primarily attributing it to global oil price fluctuations, transportation costs, and the shilling’s valuation against the US dollar.