World market keeps domestic gas prices unpredictable

Regular increase of prices for Liquefied Petroleum Gas (LPG) in the world market has never been a disincentive to consumers due to adjustments made by the local suppliers.

This was said on Tuesday in Dar es Salaam by the Oryx Gas Tanzania Limited Managing Director Mr Hamis Ramadhan in an interview over the growth of the market for LPG.

“Speculations caused by tension between some Western powers and giant oil producing countries contribute to rising prices of petroleum products including LPG in the world market,” he said.

He said for example, in a period of two months, there is an increase of 500 US dollars (about 800,000/-) to 1,240 US dollars (about 1.98m/-) per tonne of gas from only 820 US dollars (about 1.28m/-) December last year.

Likewise, transport costs per tonne has increased to 345 US dollars (552,000/-) per tonne from only 275 US dollars (about 440,000/- ) last year.

“You can not pass the total costs increased to the clients instead the company is tirelessly making adjustments considering consumers income that has remained unchanged despite being eroded by high inflation rate,” remarked Mr Ramadhan.

Also Mr Ramadhan observed that establishing a factory for cooking appliances most of which are presently being imported, is considered as one of the strategies that will pull down prices for Liquefied Petroleum Gas (LPG), ultimately attracting more users.

Apart from all the hurdles overwhelming the gas sector demand for the product has gone up to over 1,500 tonnes last year from just 1,200 tonnes recorded in the preceding period.

“There is increased awareness on the use of gas particularly for cooking, thus cutting down use of charcoal as the major factor for environmental destruction,” he said.

According to Mr Edmund Maege, a gas user from Ubungo said the suppliers are not to blame for the increased costs of the product but consideration should be made on taxes especially on the cooking and lighting appliances to pull down prices.

 Oryx is one of the leading suppliers of LPG in the local market with gas cylinders quantities ranging from 3kg, 6kg, 15kg and 38kg.

Sources: The Daily News, dailynews.co.tz, reported by Sebastian Mrindoko

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