Wednesday, August 03, 2011

Fuel prices down by 9%


Petrol, diesel and kerosene prices will drop by Sh170 to Sh200 per litre starting today.
Suppliers will be required to adjust their prices to the letter, according to the Energy and Water Regulatory Authority (Ewura), or face “stern” disciplinary action.

Mr Haruna Masebu, executive director of the agency, told a press conference in Dodoma that a litre of petrol would now retail at a maximum of



Sh2,003.79 from Sh2,206.16, a drop of Sh202.37 or 9.17 per cent.Diesel prices dropped by Sh173.49 per litre and would now be sold at a pump price of Sh1,910.84 from Sh2,084.33, a drop of 8.31 per cent. Kerosene consumers will get relief of Sh181.37 per litre, and will now pay Sh1,904.53 instead of Sh2,085.90.
Accompanied by Mr Simon Sayore, the chairman of the board of the agency, the executive director said: “We will not tolerate any excuses for not lowering the prices. Consumers should report any trader still selling above these new prices.”

Ewura inspectors and representative of other government agencies will be sent out to enforce the directives.
“Anyone exceeding the prices by even a shilling will be liable to a fine of Sh3 million and a penalty of Sh1 million every day for non-compliance,” Mr Masebu warned.The new prices follow the revision of the template to determine the end price after the government reduced fuel duty in the 2011/12 Budget.

The new formula also took into consideration the reduction of levies charged by several state agencies for each litre of fuel sold.   The state had directed that such levies come down by 50 per cent.After consultations, Mr Masebu said yesterday, the agency had managed to reduce by about 51.4 per cent the several levies.
As a result, the levies were cut from Sh54.03 to Sh27.27 per litre of petrol and Sh55 to Sh28.15 per litre of diesel. For kerosene, they dropped from Sh55.66 to Sh24.50 per litre.

“These have been done to ensure that these agencies do not also suffer but render their duties as normal,” Mr Masebu said. Some of the bodies that receive levies on fuel include Ewura, TPA, Sumatra, TPDC and TBS.
But there are still challenges, he added, that could thwart efforts to maintain lower fuel prices. These include the rise of prices in the global market and depreciation of the Tanzania currency against US dollar.

“The two reasons would continue to disturb the current situation of fuel pricing,” he said.  Due to Ewura interventions since 2009, local consumers have an inherent relief of 39 per cent that would be a burden should the forces of demand and supply come into play.

Mr Masebu cautioned that the pricing formula would be reviewed periodically. He said the anticipated bulk procurement would take effect later in the year and provide added relief. “However the current formula is still relevant as it looks into the whole channel from the source to the outlets,” he explained

SOURCE: THE CITIZEN

Get Business Updates in Your Inbox

Related Posts Plugin for WordPress, Blogger...