Tanzania: Fuel pump prices lowered slightly in latest review

Tanzania cut the pump prices of petrol, diesel and kerosene on Monday, but a sharp depreciation in the east African nation's shilling currency curbed the reductions.

Fuel prices in the three main east Africa economies of Uganda, Kenya and Tanzania have jumped this year, worsening inflation. Tanzania's year-on-year inflation soared to 13 percent in July.
The Energy and Water Utilities Regulatory Authority (EWURA) lowered the price of petrol in the commercial capital Dar es Salaam by 2.11 percent to 2,070 Tanzanian shillings per litre, and cut that of diesel by 1.57 percent to 1,999 shillings.

The price of kerosene in the commercial capital was lowered by 1.28 percent to 1,980 shillings per litre. The new price caps take immediate effect, EWURA said.
"The price decreases have been caused by a fall in the petroleum products prices in the world market as follows -- petrol 4.04 percent, diesel 3.12 percent and kerosene 2.69 percent," EWURA director general Haruna Masebu said in a public notice.
"Local market prices would have decreased more had it not been for the depreciation of the Tanzanian shilling compared to the US dollar."
Masebu said the shilling depreciated by 0.57 percent compared to the last fuel pricing round two weeks ago.
EWURA said it has also lowered wholesale prices for petrol by 2.18 percent, diesel by 1.63 percent and kerosene by 1.32 percent.
The energy regulator introduced a new price calculation formula on August 3 in line with a government pledge in its 2011/12 budget in June to cut prices to tackle rising costs of living.
Previous price cuts earlier this month caused a fuel shortage in the country, with oil retailers rejecting the new method of calculating pump prices.