In response to the trending fall in world oil market prices, the Tanzania Energy and Water Utilities Regulatory Authority (EWURA) has cut the consumer price of petrol, diesel and kerosene by 3.6%, 3.3% and 2.9% respectively as well as the wholesale prices for petrol, diesel, and kerosene by 3.8%, 3.4% and 3.0% respectively.
According to the Director General of the EWURA, Felix Ngamlagosi a reduction in the price of oil price is a standard form of relief for a country whose economy relies strongly on oil import.
“This is a big and direct relief to us,” he said, “And its contrast to oil producing countries.”
According to a recent briefing note by ECOBANK about the impact current oil prices in Africa titeled: “Oil price volatility having mixed impact on Middle Africa downstream“, “Countries which have no oil production or exports are more likely to benefit as lower fuel subsidies enable deployment of funds to other sectors of the economy [.] Tanzania’s Energy Water Utilities Regulatory Agency (EWURA) has reduced fuel price caps consistently since July 2014″.
Fuel prices represent the second largest drivers of inflation in Tanzania, but the new fuel prices are scheduled to take immediate effect and remain in place for one month in order to maintain reduce the inflationary pressures.
Follow the link to read ECOBANK full briefing note: http://tanzaniainvest.com/downloads/ECOBANK-briefing-Note-Oil-price-volatility-having-mixed-impact-on-Middle-Africa-downstream.pdf