Pump price hits new high

The Energy and Water Utilities Regulatory Authority (Ewura) yesterday announced an increase in retail prices in all petroleum products.

Retail price of petrol has gone up by Sh87 a litre (4.06 per cent) while that of diesel and kerosene has increased slightly by Sh3 (0.14 per cent) and Sh12 (0.59 per cent) a litre, respectively.

The latest fuel price increase, which could put further pressure on an already high rate of inflation, came despite the introduction of a new bulk petroleum procurement system aimed at lowering the cost of oil importation.

Following the increase a litre of petrol will be sold for Sh2,231 up to Sh2,462 in retail. While in Dar es Salaam the price will be the lowest, Kigoma and Kagera, which are the farthest regions, will pick the highest.

A litre of kerosene will be sold at Sh2,068 in Dar es Salaam while in Kigoma  it will be sold at Sh2,299.Ewura sets the price ceiling of petroleum products, but forces of supply and demand essentially govern the market.
A litre of diesel will be sold at between Sh2,098 and Sh2,329 in retail.

In a bid to avert fuel shortages in the country, oil importers, Ewura and the Tanzania Petroleum Development Corporation (TPDC) approved bulk procurement of fuel to ensure availability of the commodity. Oil importers formed the Petroleum Importation Coordinator Ltd (PIC) to facilitate implementation of the new system.

In Ferbruary, PIC awarded a Swiss company, Augusta Energy, for the second time to supply about 600,000 metric tonnes of petroleum products to the country for March and April.
Source: The Citizen,www.thecitizen.co.tz, reported by Veneranda Sumila

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