Ewura cites shilling depreciation, world market prices behind the rise New formula used in calculations
Energy and Water Utilities Regulatory Authority Business Manager Godwin Samwel (L) briefs journalists on the new prices of petroleum products at a press conference in Dar es salaam yesterday. Flanking him is EWURA`s Communication and Public Relation Manager, Titus Kaguo.
A litre of diesel will now cost Tshs 2,031.31 compared to Tshs 1,910.84 announced on the first week of this month, while kerosene would be sold at Tshs 2005.40 a litre compared to 1,904.53 calculated under the adjusted petroleum pricing formula.
“The price increases have been caused by a rise in the petroleum prices in the world market and depreciation of the Tanzanian shilling compared to the US dollar,” said Ewura in the statement released to the press, which also noted: “During this period, the exchange rate has changed by 47.12 (or 2.96 per cent), whereas the Cost, Insurance and Freight (CIF) costs have increased by an average of 5.42 per cent.”Ewura said wholesale prices for petrol for the same period have increased by Tshs 110.34 while those of diesel have risen by Tshs 120.47 and kerosene by 100.87.
“These developments forced us to review the prices for the products,” Ewura Commercial Manager, Godwin Samwel told a news conference in Dar es Salaam yesterday, stressing that the calculations were based on the new pricing formula.
Ewura said the retail and wholesale prices would have been higher had there been no review of the pricing formula.
The adjustments to the pricing formula which cut the price of fuel led was rejected by dealers, who stopped sales, seriously affecting economic activity in the country.
Ewura was quick to dispel speculations that the decision was prompted by aggrieved oil marketing companies, which had been exerting pressures on the authorities to raise the prices.
The Ewura commercial chief said: “We are not doing this because of pressure from oil dealers. The government has not succumbed to the dealers.”
The regulator pledged to continue maintaining fair competition in the country’s oil marketing sector by ensuring availability of the products in the markets.
“Public announcement of new prices intends to enable consumers and other stakeholders in the sector make informed decisions,” Samwel said.
Ewura reminded oil marketing companies to sell the products at the new prices issued by the regulator, noting that stringent legal actions would be taken against dealers would go beyond the official price limits.
“It is also an offence for dealers to remove posters showing prices of these products in the filling stations,” he explained.
There are slight mark-ups on the prices of the respective products in upcountry stations because of transportation and other factors, Ewura said.
For instance, in Lake Zone regions, prices of petrol would range from 2,222 to 2,345 per litre, 2,113 to 2,236 for diesel and between 2,139 and 2,262 for Kerosene.
Northern zone prices of petrol will range between 2,175 and 2,275 per litre, diesel between 2,072 to 2,166 and 2, 098 to 2,192 for kerosene.
In the Southern-Highland zone, according to Ewura, petrol prices would range from 2,186 to 2,321 per litre, diesel between 2,040 and 2,212 while kerosene 2,104 to 2,238. However, central zone prices would as follows 2,119 to 2,205 per litre of petrol, 2,010 to 2,096 for diesel and 2,036 to 2,122 for kerosene.
Many parts of Tanzania experienced acute shortage of fuel for more than a week, triggered by reluctance by oil marketing companies to use new prices announced by the regulator on August 3, this year.
Most of them resumed supplies after being served by a 24-hour compliance order by Ewura.
BP resisted the order and has since received a three-month ban from selling fuel.
SOURCE: THE GUARDIAN
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