Tanzania cuts fuel pump prices on global oil slump

By Fumbuka Ng'wanakilala Dar es Salaam
  
Tanzania's energy regulator cut on Thursday the retail prices of petrol, diesel and kerosene due to the global oil price slump, in a move likely to further ease inflationary pressures.

Fuel prices have a big effect on inflation in east Africa's second-biggest economy.

Prices would have dropped further
 

The Energy and Water Utilities Regulatory Authority (EWURA) slashed the maximum retail price on a litre of petrol by 6.83 percent to 2,029 shillings ($1.1634) in the capital Dar es Salaam and that of diesel by 5.85 percent to 1,909 shillings per litre.

The price of kerosene was reduced by 7.16 percent to 1,888 shillings per litre.

"This notable drop in retail and wholesale local prices has been caused by a continued trend of falling world oil market prices and a decrease in the supplier's premium," EWURA said in a statement.

"Prices would have dropped further had it not been for the depreciation of the Tanzanian Shilling against the U.S. dollar."

The price adjustments take immediate effect and will stay in place for one month.

Tanzania's year-on-year inflation fell to 5.9 percent in October from 6.6 percent the previous month. 

Source - http://www.theafricareport.com/East-Horn-Africa/tanzania-cuts-fuel-pump-prices-on-global-oil-slump.html