Wednesday, April 4, 2012

TANZANIA RAISES FUEL PRICES ON HIGHER IMPORT COSTS



DAR ES SALAAM, April 4 (Reuters) - Tanzania's energy regulator on Wednesday raised the prices of petrol, diesel and kerosene in east Africa's second-biggest economy, citing higher international oil prices.

The retail price of petrol was raised 4.1 percent and the price of diesel by 0.1 percent. Kerosene prices were raised 0.6 percent in the latest monthly price changes which take immediate effect.

"The price changes have been caused by changes in world market prices," the Energy and Water Utilities Regulatory Authority (EWURA) said in a statement.

The energy regulator said petrol prices on the world market rose by $95.7 per metric tonne over the past month.

EWURA raised the price of petrol in the commercial capital Dar es Salaam by 87 shillings per litre to 2,231 shillings, and that of diesel in the capital by 3 shillings to 2,098 shillings.

Kerosene prices in the commercial capital rose by 12 shillings to 2,068 shillings per litre.

The energy regulator started using a new formula in January for calculating fuel price caps after the country introduced a bulk petroleum procurement system.

The importation of large volumes of fuel, aimed at lowering costs of oil imports, has so far failed to reduce pump prices due to currency fluctuations and rising global oil prices.

Tanzania has awarded a $750 million contract to Swiss trader Augusta Energy to supply more than 600,000 tonnes of oil products to the country over May and June.

(Reporting by Fumbuka Ng'wanakilala; editing by George Obulutsa and Jason Neely)


REUTERS

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