EWURA Announces Reduction in Fuel Prices

The Energy and Water Utilities Regulatory Authority (EWURA) has announced a notable reduction in the cap prices of petroleum products in Tanzania, effective from today, Wednesday, June 5, 2024, at 6:01 AM.

For the month of June 2024, retail fuel prices in Dar Es Salaam are set at Tsh. 3261 per liter for petrol, Tsh. 3122 for diesel, and Tsh. 3261 for kerosene.

This announcement is expected to bring relief to consumers across the country who have been dealing with fluctuating fuel costs.

Speaking to the media, EWURA detailed the factors influencing this price adjustment. A significant contributor to the price reduction is the decrease in the Free on Board (FOB) prices of refined petroleum products in the global market.

Specifically, the FOB prices have dropped by an average of 11.82% for petrol, 7.77% for diesel, and 7.94% for kerosene. This decline in global prices has allowed for a corresponding reduction in domestic fuel prices.

In addition to the drop in global FOB prices, there has been a 1.4% increase in the average cost of foreign exchange (Applicable Exchange Rate).

This adjustment reflects changes in the value of the Tanzanian shilling against major foreign currencies, which affects the cost of importing fuel.

Despite the increase in exchange rates, the overall impact has been a reduction in fuel prices due to the significant decrease in global oil prices.

EWURA also noted changes in the premiums associated with fuel importation. In Dar Es Salaam port, the importation costs for petrol have decreased by an average of 2.06%, and for diesel by 8.51%.

However, in Tanga port, the premiums for petrol importation increased by an average of 7.07%, and for diesel by 25.24%. Conversely, in Mtwara port, the premiums have decreased by an average of 12.64% for petrol and 12.61% for diesel.

These varying changes in importation costs across different ports have collectively contributed to the overall reduction in fuel prices.

To provide context, the previous month’s cap prices for petroleum products, which took effect from Wednesday, May 1, 2024, were Tsh. 3314 per liter for petrol, Tsh. 3196 for diesel, and Tsh. 2840 for kerosene in Dar Es Salaam.

The new prices reflect a substantial decrease, particularly beneficial for consumers facing high transportation and living costs.

The reduction in fuel prices is expected to have a positive impact on the cost of living and economic activities across Tanzania.

Lower fuel prices can lead to reduced transportation costs for goods and services, which may translate into lower prices for consumer goods.

This, in turn, can help to mitigate inflationary pressures and improve the overall economic well-being of Tanzanians.

EWURA’s proactive approach in monitoring international oil markets and adjusting local fuel prices ensures that Tanzanian consumers benefit from favorable global economic conditions.

By aligning domestic fuel prices with global market trends, EWURA aims to cushion the Tanzanian economy from external shocks and ensure stability.

Furthermore, the reduction in fuel prices supports the government’s broader economic goals by fostering an environment conducive to growth and development.

Reduced transportation costs can enhance the competitiveness of Tanzanian businesses, encourage investment, and stimulate economic activities in various sectors.

EWURA’s announcement of reduced fuel prices for June 2024 is a welcome development for both consumers and businesses. The continued effort to regulate and adjust fuel prices in response to global market conditions and local economic factors highlights the government’s commitment to maintaining affordability and accessibility of essential commodities.

As Tanzanians begin to benefit from these reduced prices, there is optimism that this will contribute to broader economic growth and improved living standards throughout the country.