Tanzania Experiences Fourth Consecutive Month of Rising Fuel Prices
Tanzania, an East African Country is currently grappling with a continued increase in fuel prices, marking the fourth consecutive month of rising costs. The latest adjustments, announced by the Energy and Water Utilities Regulatory Authority (EWURA) on October 3, 2023, are scheduled to come into effect on October 4,2023
According to reports, in the city of Dar es Salaam, a liter of petrol will now set consumers back to Tsh3,281 ($1.31), up from the previous Tsh3,213 ($1.29). Meanwhile, diesel, which is a vital commodity for transportation and industry, will see its price climb to Tsh3,448 ($1.38) per liter, a noticeable increase from the previous Tsh3,259 ($1.30). Kerosene has also experienced a price hike, now priced at Tsh2,943 ($1.18) per liter.
The situation was reported to more challenging for areas that rely on fuel imported through the Tanga Port, where petrol is now priced at Tsh3,327 ($1.33) per liter, diesel at Tsh3,494 ($1.40), and kerosene at Tsh2,989 ($1.20).
EWURA attributed the price hikes to a combination of factors, including the surging global fuel prices, increased export charges, reduced oil output orchestrated by OPEC+, and the economic sanctions imposed against Russia by western countries.
According to EWURA, the global fuel prices have surged by 4.21 percent, amplifying the pressure on export charges. The statistics reveal a significant impact, with export charges rising by 17 percent for petrol, a staggering 62 percent for diesel, and 4 percent for kerosene.
The ongoing reduction in oil output by OPEC+, a coalition of oil-producing nations led by Saudi Arabia and Russia, is also a contributing factor to the escalating fuel prices. The alliance has recently announced a production cut of 1 million barrels per day, set to commence in November, which is poised to exert further upward pressure on prices.
These sustained fuel price hikes are posing significant challenges to Tanzanian motorists, already contending with a high cost of living. Additionally, the likelihood of increased prices for goods and services looms large, as businesses struggle with the amplified transportation costs that will inevitably be passed on to consumers.
As of press time,the Tanzanian government has not revealed any measures to counteract the impact of the fuel price surge on its citizens. In the face of these rising costs, Tanzanians are navigating a tough economic landscape, with growing concerns about their ability to manage the escalating cost of living.