Tanzania has lowered the prices of petrol, diesel and kerosene in a move seen as aimed at lessening inflationary pressures in the east African country.
The Energy and Water Utilities Regulatory (EWURA) attributed this move to a stronger local currency and lower world market prices.
Petrol prices would fall 5.96 percent to 1.993 shillings in the commercial capital Dar es Salaam with immediate effect. Diesel dips 1.6 percent to 1.967 shillings.
The cost of Kerosene declines 2.5 percent to 1.973 shillings a litre.
“These changes of petroleum products prices have been attributed to a decrease of prices in the world market and a slight appreciation of Tanzanian shilling,” EWURA said in a statement.
Tanzania’s year-on-year inflation rate fell for the eleventh straight month in November to 12.1 percent from 12.9 percent in October.
This was largely to a slower rise in food prices. Food and energy prices are the main drivers of consumer prices in Tanzania.
EWURA noted that in line with the prevailing sector legislation, prices of petroleum products were governed by rules of supply and demand.
EWURA promised to continue encouraging competition in the sector and avail petroleum product prices including caps to keep consumers informed so that they are not inclined to pay higher prices.
“This information on prices is intended to enable stakeholders make informed decisions on petroleum prices at any given time…” the statement asserted.
Nonetheless it reminded customers and suppliers alike that oil marketing companies that they are free to sell their products at prices that give them competitive advantages.
But this if such prices do not exceed the price caps for the product in question.
The new approved formula was gazetted through Government Notice No. 454 of 23rd December 2011.
“It is an offence not to have prices published on clearly visible boards in front of the petrol stations…” the authority warned.