Tanzania Lowers Fuel Prices As Kenyans Dismiss Looming Price Increase To Ksh300

Motorists in Tanzania at the start of November started enjoying lower fuel prices as their Kenyan counterparts shunned remarks by Energy Cabinet Secretary (CS) Davis Chirchir warning of a potential price hike to Ksh300.

In a statement, Tanzania's Energy and Water Utilities Regulatory Authority (EWURA), the equivalent of Kenya's Energy and Petroleum Regulatory Authority (EPRA), revealed that the decrease was informed by trends in the global oil market in the month of November.

"Changes in prices of petroleum products in November 2023 are mainly due to the decrease in the world oil price by an average of 5.68%, and a decrease in premiums for the importation of petroleum products by an average of 13% for PMS and 25% for AGO, reduction of production of petroleum products by OPEC+ and economic sanctions on Russia," stated EWURA in part.

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

The prices which took effect in Tanzania on Wednesday, November 1 affect regions such as Dar es Salaam, Tanga, and Mtwara.

In Dar, considered one of the country's largest cities, the price of Super Petrol dropped to Tsh 3274 (Ksh 197.62) per litre from the previous Tsh 3281 (Ksh 198.04).

Diesel was lowered to Tsh 3374 (Ksh 203.65) from the previous Tsh 3448 (Ksh 208.12).

For the Tanga region, EWURA announced that the price of petrol per litre for the month of November would be Tsh 3320 (Ksh 200.39), a decrease from the previous Tsh 3327(Ksh 200.82).

The price of petrol for Mtwara was lowered to Tsh 3347 (Ksh 202.02) from the previous Tsh 3353 (Ksh 202.38).

EWURA further attributed the price cuts to the decrease of the duties imposed on petroleum imports by an average of 13% for petroleum and 25% for Automated Gas Oil (AGO).

CS Chirchir earlier told the National Dialogue Committee (NADCO) that the Israel-Hamas war could risk pushing up fuel prices in Kenya to Ksh300 per litre.

"I read an article in the Financial Times the other day that because of the Hamas and Israeli War, the international prices could go up to USD150 and that would mean our products going to a high of Ksh300 at the pump," CS Chirchir told NADCO.

Currently, the prices of fuel ahead of this month's review read as follows: Super Petrol, Diesel and Kerosene retail at Ksh217.36, Ksh205.47 and Ksh205.06 respectively.

The removal of the subsidy and upward review of Value Added Tax (VAT) on fuel from 8 per cent to 16 per cent saw the price of the commodity break past the record, twice.

President William Ruto's administration has faced sharp criticism regarding the move to increase taxes on fuel and the removal of subsidies which have for long helped in keeping the prices of fuel low.

Furthermore, Tanzania's fuel prices could entice Kenyans living near the border to flock to the neighbouring country to purchase fuel at a cheaper price.