Pump prices for fuel will drop by between 311/- per litre and 207/- per litre effective today thanks to falling global market prices for the commodity.Energy and Water Utilities Regulatory Authority (Ewura) Director General Felix Ngamlagosi said in Dar es Salaam that a litre of petrol will now sell at less than 2,000/-.
“Effective tomorrow (today, motorists in Dar es Salaam will pay less than 2,000/- a litre of petrol but upcountry consumers will add transport costs,” Mr Ngamlagosi announced.
Pump prices for diesel and kerosene will also fall by between 244/- and 207/- per litre immediately. Mr Ngamlagosi noted that the fall in domestic pump prices did not correspond to world market price for crude oil due to a number of factors, including a depreciating shilling and other fixed costs such as shipping and government taxes.
“This latest price slash corresponds to last November’s world market prices because it takes a month for petroleum products to be shipped from foreign suppliers to the country,” the Ewura DG noted.
Global crude oil prices have been on a free fall since last July because of poor demand and oversupply by a cartel of largest oil producers.
The Organisation of Petroleum Exporting Countries (OPEC) members have failed to agree on reduction of production hence oversupplying the global market.
“For the past three months between September and December 2014, crude oil prices in the world market have fallen from 100 US dollars (172,666/-) a barrel to 60 US dollars (103,600/-), equivalent to 40 per cent,” Mr Ngamlagosi noted, prompting questions from local journalists who wondered why the domestic price slash was by far less than 40 per cent on average.
“But you should also remember that what is being presented at the world market are prices for crude petroleum, which should be refined. Unfortunately, we don’t have a refinery here,” argued the Ewura DG.
Ewura’s Director of Petroleum, Mr Godwin Samuel, warned pump station owners to desist from hoarding the commodity while urging the public to ensure that they demand sales receipts after purchasing petroleum products.
“No matter the amount, members of the public should demand receipts for any purchases of fuel made at pump stations because it will help government collect revenue,” Mr Samuel noted, saying consumers will also assist the authority deal with irregularities if they have proof of receipts issued by retailers.
He expressed hope that pump prices for fuel will continue to fall in February because crude prices for December have continued to fall.
“However, it’s not guaranteed that we will have a significant reduction because of the unstable shilling,” he cautioned. Petrol prices in the world market have on average fallen by 25 per cent, diesel by 28 per cent and kerosene at 24 per cent in the past three months.
Source: Daily News, reported by Finnigan Wa Simbeye from Dar es Salaam, Tanzania
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