Uproar As Tanzania’s Energy Authority Announces Decrease in Fuel Prices
On Monday, Kenyans rejected the explanation of Energy Cabinet Secretary Davis Chirchir that the Israel-Palestine conflict will likely cause fuel prices to soar to Ksh300 per liter.
Chirchir, in his testimony to the National Dialogue Committee, contended that the geopolitical occurrence was probable to result in fuel shortages in Kenya.
In contrast, the Energy and Water Utilities Authority (EWURA) of Tanzania, which functions as the country’s equivalent to EPRA, had previously declared its intention to reduce petroleum prices for November by worldwide market trends.
EWURA, in a statement about fuel prices for November, ascribed the decline to a worldwide contraction in crude prices of 5.86% on average.
“Prices of petroleum products in November 2023 changed primarily as a result of the average global oil price falling by 5.68%, premiums for the importation of petroleum products decreasing by 13% for PMS and 25% for AGO, OPEC+’s reduction in petroleum product production, and economic sanctions against Russia,” EWURA said in a statement.
The tariffs declared by EWURA were implemented across multiple regions of Tanzania, including Dar es Salaam, Tanga, and Mtwara, on November 1.
About the price reductions, EWURA declared that the cost of fuels in the Dar es Salaam region would decrease from Tsh 3281 (Ksh 198.04) to Tsh 3274 (Ksh 197.62) per liter.
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Additionally, the agency declared a decrease in the diesel per liter cost for the Dar es Salaam region, decreasing it from Tsh 3448 (Ksh 208.12) to Tsh 3374 (Ksh 203.65).
EWURA has revised the price per liter of kerosene for November in the Tanga region from Tsh 3327 (Ksh 200.82) to Tsh 3320 (Ksh 200.39).
Additionally, EWURA declared a decrease in the cost of kerosene in Mtwara, which fell to Tsh 3347.9 (Ksh 202.02) from Tsh 3353 (Ksh 202.38).
EWURA additionally ascribed the reduction in prices to the duties levied on petroleum imports, which were reduced by an average of 13% for petroleum and 25% for Automated Gas Oil (AGO).
The decision by Tanzania to reduce fuel prices may explain why the majority of bordering Kenyans have chosen to purchase gasoline in the neighboring East African nation.
In the interim, fuel costs in Kenya have reached an all-time high since October 14, when EPRA released fuel price data.
Uproar As Tanzania’s Energy Authority Announces Decrease in Fuel Prices