Effective today, fuel prices in Dar es Salaam have dropped to reflect global market rates, but the weak shilling has kept prices from falling even lower.
Prices have dropped 6.57 percent (116 TSH/litre) for petrol, 8.49 percent (145 TSH/litre) for diesel and 8.08 percent (134 TSH/litre) for kerosene.
That means cap prices in Dar es Salaam will be 1,652 TSH/litre for petrol, 1,563 TSH/litre for diesel and 1,523 TSH/litre for kerosene.
“The continuing drop in the retail and wholesale local prices has been caused by a continued trend of falling world oil market prices,” says Energy and Water Utilities Regulatory Authority (EWURA) director general Felix Ngamlagosi.
Ngamlagosi says while global market prices have been halved, prices locally have only dropped 25.67 percent on average due to an eight percent weakening of the shilling.
“The drop in local market prices would have been higher, had the local currency stabilized,” says Ngamlagosi, noting that shipping costs account for about 60 percent of local pump prices.
In February EWURA dropped prices at the pump 9.6 percent.