Tanzania Increases Fuel Prices By Ksh27 After Kenyans Flock For Cheap Fuel

Motorists in Tanzania will be forced to dig deeper into their pockets to pay for fuel following an increase in petroleum products by up to Ksh27 per litre.

Appearing to borrow from their neighbours, the Energy and Water Utilities Regulatory Authority (EWURA) announced on Thursday, August 3 the increase in fuel prices by 17 per cent owing to the existing shortage of the US dollar.

EWURA Director General James Mwainyekule revealed that the dollar increase has been a result of the shortage of petroleum products effecting a rise in cap prices thereby crippling importation costs into Tanzania.

Aerial view of the port of Dar es Salaam. /WORLD BANK

The published cap prices took effect from Wednesday, August 2, 2023, with Tanzanian media reporting that the increase in fuel prices triggered a backlash against the government which had earlier assured its citizens of the sustainability of the Dollar.

The announcement by President Samia Suluhu-led government threatens to inflict a blow on Kenyans who have been reportedly flocking to Tanzania to get cheaper petrol to escape the high cost of fuel on their own turf.

This is despite Kenya having the highest fuel prices compared to Tanzania, with a litre of Petrol going for Ksh194.68 while Diesel costs Ksh179.67 per litre. Kerosene costs Ksh169.48, though it was a decrease from the previous month's pricing of Ksh173.44 per litre.

"Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum prices in Nairobi are as follows: Super Petrol & Kerosene decrease by Kshs0.85 & Kshs3.96 per litre respectively while Diesel remains unchanged," a statement by Kenya's Energy and Petroleum Regulatory Authority (EPRA) read in part on Friday, July 14.

"EPRA has calculated the maximum retail prices of petroleum products which will be in force from July 15, 2023, to August 14, 2023, in accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022."

On Monday, July 31, EPRA hosted a delegation from the Tanzanian Bureau of Standard (TBS) at its headquarters in Upperhill, Nairobi, which was in the country to conduct a benchmarking exercise to learn about the fuel-marking programme.

"We are delighted to share with the Tanzanian Bureau of Standard (TBS). EPRA is currently hosting a delegation from the Tanzanian Bureau of Standard (TBS) at our headquarters in Upperhill, Nairobi," EPRA stated. 

EPRA bosses, while confirming the visit, stated that their counterparts had observed a lot of ideas that would help them strengthen their own energy sector.

Kenya's high fuel prices are a result of the 16 Per cent VAT on fuel products included in the Finance Act, 2023 which forced EPRA to increase fuel prices on Friday, June 30, particularly Petrol by Ksh13.

Energy and Petroleum Regulatory Authority (EPRA) meeting senior government officials from Tanzania who were on benchmarking exercise on Monday, August 31, 2023. /EPRA KENYA