Motorists to pay slightly more at pump stations

Motorists will have to dig a bit deeper in their pockets this month after the regulator increased slightly the price of petrol by close to two per cent while cooking energy get some relief.

Energy and Water Utilities Regulatory Authority said in its latest price schedule that a litre of petrol will fetch an extra 35/- compared to previous price.

In Dar es Salaam, the cap price for petrol is now 1,991/- per litre while those in Karagwe  and Kigoma, over a 1,200 kilometers away will buy the same litre for 2,222/-.

EWURA said while the price of petrol increases, motorists driving diesel cars will pay almost the same price as the cap price has slightly increased by less than 50 cent or about 0.02 per cent.

On other hand the regulator said the price of kerosene has gone down by 12/- a litre or 0.6 per cent to 1,951/- in Dar, and 2,183/- in Karagwe and Kigoma, while diesel goes up to 1,977/- in Dar and 2,208/- in Karagwe and Kigoma.

“The retail price for kerosene changes have been caused by changing world market prices for the commodity,” Ewura said in the report.

Another factor which led to price stabilization is appreciation of the shilling against US dollar which has added three per cent of value compared to the exchange rate used in the previous publication.

EWURA also said days for which demurrage charges are chargeable at Dar es Salaam port have significantly dropped. Due to bulk procurement system the average dwell time has decreased to four days per vessel.

Swiss company, Augusta Energy, won a tender to supply of 540,000 metric tonnes of oil covering months of January and February 2012.

Stakeholders pegged their hope on bulk oil procurement system to lower fuel prices, which are partly to blame for rising inflation rate in the country.

The year-on-year inflation rate in east Africa's second-biggest economy accelerated for the fourteenth straight month in December to 19.8 per cent from 19.2 per cent the previous month due to rising food and fuel prices.

Oil imports soared 36.2 percent to 2.6 billion US dollar in the year to August 2011, with volumes rising to 3.4 million tonnes from 3.2 million, according to the latest Bank of Tanzania report.

Last month EWURA, introduced a new pricing formula after the commencement of the bulk oil procurement system. The price caps are now calculated in monthly basis instead of bi-weekly.

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