Fuel prices increase for fourth consecutive month
For petrol, the price went up by Sh17, Diesel by Sh21, and kerosene by a whopping Sh33.
Dar es Salaam. Fuel prices in Tanzania have increased for the fourth consecutive month, with diesel taking the biggest hit. The new prices, announced by the Energy and Water Utilities Regulatory Authority (Ewura) on October 3, 2023, will take effect on October 4.
In Dar es Salaam, a litre of petrol will now cost Sh3,281, up from Sh3213. A litre of diesel will now cost Sh3,448, up from Sh3259. Kerosene prices have also increased, with a litre now costing Sh2,943.
Fuel imported through the Tanga Port will be even more expensive, with petrol at Sh3,327, diesel at Sh3,494, and kerosene at Sh2,989.
Ewura has attributed the price increase to a number of factors, including:Rising global fuel prices, Increased export charges,Reduced oil output by OPEC+, Economic sanctions placed against Russia by western countries
"The price increase has been compounded by global factors, with global fuel prices skyrocketing by 4.21 percent, putting a strain on export charges, which increased by 17 percent for petrol, 62 percent for diesel, and 4 percent for kerosene," Ewura said in a statement.
The continued oil output reduction by OPEC+, an alliance of oil-producing countries led by Saudi Arabia and Russia, is also contributing to the price increase.
OPEC+ has announced that it will cut production by 1 million barrels per day beginning in November, which is expected to push prices up further.
The economic sanctions placed against Russia by western countries following its invasion of Ukraine have also had an impact on global fuel prices. Russia is one of the world's largest oil exporters, and the sanctions have disrupted its ability to sell oil on the global market.
The fuel price increase is bad news for Tanzanian motorists, who are already struggling to cope with the high cost of living.
It is also likely to lead to higher prices for goods and services, as businesses pass on the increased cost of transportation to consumers.
The government has not yet announced any measures to cushion the impact of the fuel price increase on Tanzanians.
However, some experts are calling on the government to reduce fuel taxes or provide subsidies to low-income households.
