Tanzania cut fuel costs effective Wednesday after the government announced Tsh100 billion ($43 million) in fuel subsidies last month.
According to the regulator of energy and water utilities (EWURA) effective Wednesday , the retail price of gasoline is Tsh 2,994 ($1.28) from 3,303 ($1.42) per liter, diesel is Tsh 3,126 ($1.34) from Tsh 3,452 ($1.48) per litre, while kerosene prices remain unchanged.
Read:Fuel prices hit new highs in Tanzania
In Dar es Salaam, gasoline prices fell by 306 Tsh (0, $13) per liter while diesel prices fell by Tsh 320 ($0.14) per liter. In the ports of Tanga and Mtwara, gasoline prices fell by 152 Tsh ($0.06) and 282 Tsh ($0.12) per liter, respectively.
Diesel prices fell to 476 Tsh (0.2 $ ) per liter for the Port of Tanga and 486 Tsh ($0.21) per liter. for the port of Mtwara, Ewura said.
“Oil distribution companies are free to sell their products at a price that gives them a competitive advantage, provided that such price does not exceed the price cap and not below the floor price lies for the relevant product,” reads a statement from Ewura CEO Modestus Lumato.
Also read:Tanzania’s president holds cabinet meeting over high fuel prices
< p>On May 10, Energy Minister January Makamba announced a Tsh 100 billion (US$43 million) subsidy to come into effect from June 1, 2022 to reduce fuel costs before the start of the new fiscal year.
Makamba also confirmed that Tanzania is in the final stages of obtaining loans from the IMF and World Bank to lower the high cost of living.
Zuhura Yunus, Tanzania’s Director of Presidential Communications adds e added: “Following the rise in fuel prices and high cost of living, Tanzania last month applied for a Tsh 1.1 billion (US$473,000) soft loan from the International Monetary Fund (IMF) during talks with President Samia Suluhu Hassan with Kristalina Georgieva, Managing Director of the IMF.”
The IMF team was in Tanzania last month to hold further talks on the three-year loan.
In July 2021, Tanzania imposed a Tsh100 ($0.043 ) Surcharge on petrol, diesel and kerosene. This was suspended in February this year to curb rising fuel costs in the country, and the suspension remained in effect until May 2022.
According to Makamba, Tanzania lost more than Tsh 102 billion (US$ 43.8 million). dollars) in revenue from lost revenue from fuel duties and taxes.