Crude oil prices have been increasing since May 2020 whereas the same have more than doubled from an average of US$ 32 per barrel in May 2020 to US$ 86 per barrel by the end of October 2021. To avoid a negative impact on the economy and people’s livelihood due to increased prices of petroleum products in the world market, in July
2021, Her Excellency, the President of United Republic of Tanzania, Samia Suluhu Hassan, directed that measures should be taken to lower petroleum products prices so that they become affordable to Tanzanians.
Consequently, in October 2021, the Minister for Energy, Hon. January Makamba implemented the directives by proposing reduction of charges, levies and fees of Government institutions which are imposed on petroleum products. The proposal was approved on 5th October 2021. Moreover, the Government is planning to source petroleum products directly from the refineries as means to cut down costs of imported petroleum products. Furthermore, the Government is collaborating with the petroleum business community mainly wholesalers of petroleum products to ensure prices of petroleum products are affordable. These are commendable actions taken by the Government as the same would have far reaching social-economic impacts.
In view of the foregoing and consistent with the Government commitment to minimize price shocks of petroleum products, the Energy and Water Utilities Regulatory Authority (EWURA) hereby publishes cap prices to be applicable for the month of November 2021. It should be noted that the prices that prevailed in the previous month are being maintained with the exception of diesel imported through the port of Dar es Salaam which has been reduced by TZS 18 per litre. Without the Government’s interventions,
petroleum prices would have risen as shown below:-.
a) Dar es Salaam Port: TZS 2,492 per litre of petrol and TZS 2,188 per litre of kerosene;
b) Tanga Port: TZS 2,538 per litre of petrol and TZS 2,304 per litre of diesel; and c) Mtwara Port: TZS 2,529 per litre of petrol and TZS 2,349 per litre of diesel.
The new prices, applicable in Tanzania Mainland, shall be effective from Wednesday,
3rd November 2021. Hereinafter, kindly take note of the following:-
a) Retail prices of petrol will be TZS 2,439 per litre in Dar es Salaam, TZS 2,478 per litre in Tanga and TZS 2,455 per litre in Mtwara.
b) Retail prices of diesel will be TZS 2,243 per litre in Dar es Salaam, TZS 2,245 per litre in Tanga and TZS 2,279 per litre in Mtwara.
c) Retail prices of kerosene will be TZS 2,188 per litre in Dar es Salaam. Due to the fact that there is no kerosene in Tanga and Mtwara, prices of the product to be applicable throughout the country will be computed based on the cost of the Kerosene received through Dar es Salaam port and the transport cost to the respective regional centres, districts, and towns.
d) EWURA would like to remind the public that these cap prices can be accessed through mobile phones by dialling *152*00# and then following the provided instructions. This service is free of charge and is available in all mobile phone service providers in the country.
e) In line with the prevailing sector legislation (Petroleum Act, 2015, section
166), prices of petroleum products are governed by rules of demand and supply. EWURA shall continue to encourage competition in the sector by making available petroleum products pricing information including cap prices. This information on prices is intended to enable stakeholders to make informed decisions on petroleum prices at any particular time
f) Oil Marketing Companies are free to sell their products at a price that give s them a competitive advantage provided that, such price does not exceed the
price cap for the relevant product.
g) All petrol stations are required to publish petroleum product prices on clearly visible boards. The price boards should clearly show prices charged, discounts offered as well as any trade incentives or promotions on offer. Consumers are encouraged to purchase from stations that sell products at the most competitive prices and offer better services. It is an offense 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.
h) 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 those 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. This can be used as an exhibit in case of a complaint lodged in the event that the selling price is above the cap price or in case the products sold do not meet the approved specifications and provide an assurance that appropriate government taxes on sales of petroleum products are fully accounted for recovery from the Retailers.
