September will bring respite to Tanzanian drivers as fuel prices declined sharply, following the pattern of the already volatile worldwide pricing.
According to a report released by the Energy and Water Utilities Regulatory Authority (EWURA), gasoline, diesel, and kerosene prices have decreased by an average of 3.6 percent since August of this year.
The reduction in retail and wholesale fuel prices will take effect on Wednesday, September 4, 2024. A statement endorsed by Dr. James Mwainyekule, the director general of Ewura, states that the retail price of gasoline in Dar es Salaam decreased from Sh3,231 per litre in August to Sh3,140 in September, while the retail price of diesel decreased from Sh3,131 to Sh3,011.
According to Ewura, the cost of kerosene also decreased, from Sh3,257 to Sh3,121 per litre. The prices are in line with a declining global trend in oil prices.
“The FOB prices that were in effect in August 2024 serve as the basis for the petroleum products cap prices in September 2024. According to Dr. Mwainyekule’s announcement, the August FOB prices of gasoline, diesel, and kerosene reduced by an average of 7.68 percent, 6.22 percent, and 6.20 percent, respectively, in comparison to July 2024. The statement claims that in Dar es Salaam Port, the premiums for the importation of petroleum products fell by an average of 10.55 percent for gasoline and 13.64 percent for diesel, while they increased by an average of 3.37 percent for kerosene.
For gasoline and diesel at Tanga Port, the premiums dropped by 4.46 percent, while at Mtwara Port, they dropped by an average of 14.98 percent. According to a Reuters survey, rising inventories and slowing China demand are putting pressure on oil prices. The poll revealed that as Saudi Arabia and its OPEC+ partners get ready to loosen some output curbs starting in October, analysts have decreased their projections for oil prices in 2024 due to sluggish gasoline demand from China, the world’s largest importer, and rising inventory levels.
According to a Reuters survey conducted this month, 37 analysts and economists predicted that Brent crude will average $82.86 per barrel in 2024—a fourth consecutive decline in forecasts from the $83.66 predicted in July.
Cities have differences
The distance between the ports and Tanzania’s capital city determines the difference in retail and wholesale costs for petroleum products. Currently, fuel is imported into various regions via the ports of Dar es Salaam, Tanga, and Mtwara.
