Monday, November 7, 2011

Tanzania raises fuel prices due to high global prices

DAR ES SALAAM - Tanzania's energy regulator raised the prices of petrol, diesel and kerosene on Monday due to high international prices, pointing to increased pressure on inflation in east Africa's second-biggest economy.


Year-on-year inflation jumped to 16.8 percent in September from 14.1 percent in the previous month on higher food and fuel prices.


The Energy and Water Utilities Regulatory Authority (EWURA) raised the retail price of petrol 2.47 percent and increased the price of diesel 0.14 percent. Kerosene prices were raised 0.99 percent in the latest price caps that take immediate effect.


"The price changes have been caused by changes in world market prices. Oil marketing companies are free to sell their products at a price that gives them competitive advantage, provided that such price does not exceed the price cap for the relevant product," EWURA said in a statement.


EWURA raised the price of petrol in the commercial capital Dar es Salaam by 49 shillings to 2,043 shillings, and increased that of diesel in the capital by 3 shillings to 1,983 shillings per litre.


Kerosene in the commercial capital rose by 19 shillings to 1,975 shillings per litre.


The energy regulator introduced a new formula for calculating fuel prices in August in line with a government pledge in its 2011/12 budget in June to cut prices to tackle the rising cost of living.

Previous price cuts caused a fuel shortage in the country after some oil marketing companies rejected mandatory price reductions.

Source: Reuters

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