Sharp reactions as Tanzania announces drop in fuel prices as Kenyans brace for hike

Tanzania's Energy and Water Utilities Regulatory Authority (EWURA) has announced a decrease in the price of petroleum products.

According to Director-General James A. Mwainyekule, the reforms will take effect in Tanzania Mainland in November.

In Kenya, however, the government has warned that fuel prices will soon exceed Sh300 per litre, threatening motorists.

Mwainyekule stated that the adjustments in petroleum product prices in November 2023 are primarily attributable to a 5.68% fall in global oil prices.

He added that the changes are also a result of a decrease in premiums for the importation of petroleum products by an average of 13 per cent for PMS (gasoline) and 25 per cent for Automotive Gas Oil (AGO).

He also cited the reduction of production of petroleum products by OPEC+ and economic sanctions on Russia.

A litre of petrol goes for TZS 3,274 (Sh198.42) in Dar es Salaam, TZS 3, 320 in Tanga (Sh201.21), and TZS 3,347 in Mtwara (Sh202.84).

Diesel is TZS 3,374 (Sh204.48) in Dar es Salaam, RZS 3,510 Tanga (Sh212.72) and TZS 3,546 (Sh214.90) in Mtwara.

Kerosene is TZS 3,423 (Sh207.45) in Dar es Salaam, TZS 3,469 (Sh210.24) in Tanga and TZS 3,495 (Sh211.81) in Mtwara.

Nairobi residents pay Sh217.36 for petrol, Sh205.47 for diesel, and Sh204.46 for kerosene.

In his statement, Mwainyekule said retailers are required to sell petroleum products at prices indicated.

“Legal action will be taken against any retailer or wholesaler who fails to comply with these instructions,” Mwainyekule said in a statement.

He added that wholesalers, retailers and the general public are required to adhere to cap prices, which can be accessed through mobile phones by dialling *152*00# followed by the instructions provided.

He said Oil Marketing Companies are free to sell their products at a price that gives them a competitive advantage provided that, such price does not exceed the price cap.

He added that they should also not be not below the floor price for the relevant product as it is computed according to the EWURA (Petroleum Products Prices Setting) Rules that were gazetted through the Government Notices No 57 published on January 28, 2022, and the EWURA (Petroleum Products Prices Setting) (Amendment) Rules that were gazetted through Government Notice No 761A published on 30th October 2023.

“All petrol stations are required to publish petroleum product prices on clearly visible boards. The price boards should clearly show prices charged, discounts offered, and any trade incentives or promotions on offer,” he said.

He encouraged consumers to purchase from stations that sell products at the most competitive prices and offer better services.

“It is an offence not to have prices published on boards located in clearly visible places in front of petrol stations. Failure to adhere to this directive will attract punitive measures from EWURA,” he reiterated.

Mwainyekule said retailers must issue receipts printed from an Electronic Fiscal Pump Printer (EFPP) for all sales that they make.

“In addition, consumers are required to demand and keep receipts that clearly show the name of the petrol station, the date on which such purchase was made as well as, the type of petroleum product (fuel) and price per litre for every purchase they make,” he said.

He said this could be used as an exhibit in case of a complaint lodged if the selling price is above the cap price.