Government intervention sends diesel, kerosene prices falling

November 7, 2021

Tanzania’s energy and water utility agency has announced new reduced prices for petroleum products following government interventions.

According to Ewura acting director general Ewura Godfrey Chibulunje a litre of diesel will go for Tsh2,243 ($0.97) Dar es Salaam, Tsh2,245 ($0.97) in Tanga and Tsh2,279 ($0.98) in Mtwara this month.

A litre of kerosene will retail at Tsh2,188 ($0.94) per litre in Dar es Salaam but will rise based on the transport cost to the respective destinations in the regions.

“Crude oil prices have been increasing since May 2020, from an average of $32 per barrel in May 2020 to $86 per barrel by the end of October 2021,” said Chibulunje.

Levelling playfield

He added that Energy Minister, January Makamba had in October announced the implementation of government proposals that would see a reduction of charges, levies and fees imposed on petroleum products.

Among these is establishment of a national strategic petroleum reserve. On October 31, Makamba announced that national oil company, the Tanzania Petroleum Development Corporation (TPDC), has been awarded a tender to import diesel beginning December, to compete with private oil companies in the bulk fuel procurement system.

According to Mr Chibulunje, this is part of the government plan to reduce costs of imported petroleum products by sourcing them directly from the refineries.

TPDC is expected to sell diesel at $20 per tonne wholesale considering globally, oil is $86 per barrel. A private company that won previous tenders sold diesel at $30 per tonne after purchasing it at $73 per barrel.


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