News
Sunday, May 10, 2015
Tanzania motorists set to pay more for fuel
DAR ES SALAAM, Tanzania - Tanzania Energy and Water Regulator Authority (EWURA) last week announced new indicative prices for fuel.
EWURA Director General Felix Ngamlagosi said in a public statement, there is an increase of retail prices for petrol by $0.056 (TSh.111) per litre equivalent to 6.32% and diesel by $0.012 (TSh.23 per litre equivalent to 1.37% respectively.
However the indicative price for kerosene has dropped by $0.016 (TSh.31) per litre, equivalent to 1.86%.
“Compared to the last month publications of 1st April 2015, wholesale prices for petrol and diesel have increased by $0.056 (TSh.110.85) per litre equivalent to 6.72%, and $0.012 (TSh.22.94) per litre equivalent to 1.46% respectively, and for Kerosene the wholesale price has dropped by $0.016 (TSh.30.70) per litre, equivalent to 1.98%,” he said
Ngamlagosi stressed that the price changes are applicable from May 6, 2015.
He said the change of prices of petroleum products has been caused by the depreciation of Tanzanian shilling against the US dollar in the world market.
“This information intends to enable stakeholders to make informed decisions for non-petroleum prices at any particular time,” he said.
According to him, oil marketing companies were free to sell their products at a competitive price as long as the prices follow the Authority’s price caps as indicated in the formula which was gazetted through the Government Notice No. 72 of March 4, 2015.
He further said that EWURA will continue to encourage competition in the sector by making available petroleum products pricing information including price caps.
Ngamlagosi suggested all filling stations or fuel retailers to issue receipts in respect to all the sales that they make.
He also advised customers to demand and keep receipts that clearly show the name of a petrol station, date on which such purchase was made as well as the type of fuel and price per litre for every purchase they make.
“This can be used as an exhibit in case of a complaint lodged in the event that the selling price is above the cap price or in case the products sold are off the approved specifications,” Ngamlagosi said.
He reminded all petrol stations’ operators to publish petroleum products prices on easily visible boards which should clearly show prices charged, discounts offered as well as any trade incentives or promotions on offer.
Meanwhile oil futures settled back under $60 a barrel last week with traders increasingly worried about how much oil Iran can add to the global market should sanctions be lifted as part of a deal with world powers over its nuclear program.
June crude fell $1.99, or 3.3%, to settle at $58.94 a barrel on the New York Mercantile Exchange. Prices had settled near $61 Wednesday at their highest level of the year.
Brent crude for June delivery on London’s ICE Futures exchange settled lower by $2.23, or 3.3%, lower at $65.54 a barrel.
Iran is “talking big,” Phil Flynn, senior market analyst saidat the Price Futures Group.
Iran produces about 2.7 million barrels a day, but Oil Minister Bijan Zangeneh said Thursday that if sanctions are lifted this year, the country could be pumping 5.7 million barrels a day by 2018, according to The Wall Street Journal.
“Obviously, that won’t happen soon,” said Flynn. Iran and six world powers must reach a final agreement by June 30.
In East Africa, some oil companies had eased off on their exploration operations due to the price slump however Young Okunna, a GlobalData’s Upstream Analyst covering sub-Saharan Africa said recently, “Despite the slump in oil prices, exploration activities will continue in Sub-Saharan Africa in 2015. “
Offshore exploration well-drilling costs were previously around $100 million per well in East Africa but have fallen due to the drop in oil prices.
Operators also adopt strict cost-control mechanisms to mitigate against unwarranted expenses and therefore maintain these operations. East Africa hopes to sell its first commercial oil by 2018.
By Emmanuel Kisima, Sunday, May 10th, 2015