Tanzania Reduces Petrol Prices As Currency Stabilizes

tanzania-petrol-prices-2015

The Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA) has recently released its cap prices for petroleum products in mainland Tanzania, effective from September 2nd, 2015 up to the end of the month.

The overall prices have been reduced from those recorded in the prior month, due to a further drop in international prices of crude oil and the stability of the exchange rate TZS/USD.

According to the release, cap prices for petrol dropped by TZS 137 per litre while those for diesel and kerosene were reduced by TZS 194 per litre.

These reductions set the new maximum prices for petrol, diesel, and kerosene in Tanzania’s commercial capital, Dar es Salaam at TZS 2,153, TZS 1,832 and TZS 1,770 per litre, down from TZS 2,290, TZS 2,026 and TZS 1,964 per litre recorded in August 2015.

It represents a cap prices’ drops in 5.97%, 9.58% and 9.87% for petrol, diesel and kerosene, as product of the West Texas Intermediate (WTI) Crude Oil price’s drop in 20.8% in August according to Bloomberg.

Since June 2014 EWURA has cut the energy prices of petrol, diesel, and kerosene by 2.6%, 13.8% and 13.5% while WTI Crude Oil price has fallen by 56.5% according to Bloomberg statistics.

Despite the current fall in oil prices which has driven the strengthen of the dollar, the exchange rate TZS/USD has stabilize around TZS 2,145 per USD, after rising from TZS 1,665 per USD in Jun, 2014 to a peak of TZS 2,325 per USD in Jun, 2015, according to XE website, an online platform to exchange, trade and transfer foreign currency.