The government has been advised to consider arranging concessionary
agreements with international fuel suppliers to cushion the local economy from
adverse effects of price fluctuation.
The Dhow Financial Managing Director, Prof Mohamed Warsamem, has raised
the concern while commenting on fluctuation of fuel prices in the world market
which is constantly fuelling inflation.
"For example, special arrangements may be made with the
Organisation of the Petroleum Exporting Countries (OPEC) to ensure that the
country is supplied with fuel at certain fixed prices particularly when world
market prices go up," he said.
Prof Warsame said the move could help the country control inflation and
other costs of doing business.
According to the Energy and Water Utilities Regulatory Authority
(EWURA) retail and wholesale prices for petrol and diesel products increased
slightly by 6/- per litre, equivalent of 0.26 per cent and 37/-, a 1.82 per
cent high in the local market compared with the last publications.
Similarly, wholesale prices made a slight change to 5.97/- per litre
for petrol, equivalent to 0.28 per cent increase, 37.57/- or 1.91 per cent for
diesel while price for kerosene remained unchanged.
Prices have been stable because of the stability of the shilling
against the US dollar as a result of the Bank of Tanzania (BoT) tight liquidity
stance. The local currency traded at an average between 1,580/- and 1,600/- per
US dollar.
The lowest cap prices have been recorded in Dar es Salaam 2,189/- for
petrol, 2,081/- for diesel and 2,068/- for kerosene per litre. The highest cap
prices have been recorded in Karagwe for petrol at 2,420/-, diesel at 2,312/-
and kerosene at 2,299/-.
Prof Warsame added that improved infrastructure for transporting fuel
from the point of origin to various parts of the country could lead to
increased efficiency in other sectors of the economy as well as reduce costs of
doing business.
He also urged the government to consider reducing tax on fuel products,
a factor that would have multiplier effect on other items.
Source: The Daily News,www.dailynews.co.tz, reported by Sebastian Mrindoko
0 comments :
Post a Comment