AfricaPress-Tanzania: MOTORISTS in Tanzania will this May experience price break at the pumps for the first time in four years and is expected to bring less pressure on the shilling and inflation.
The pump price, according to Energy and Water Utility Regulatory Authority (EWURA), went down by up to 22 per cent countrywide from Tuesday due to dipping global market prices.
The price report issued by EWURA named the most benefiting regions where prices dropped between 18 and 22 percent as Tanga, Kilimanjaro, Arusha and Manyara that are delivering consignment via Tanga port.
Orbit Securities Head of Research and Analytics, Imani Muhingo said fuel makes about a fifth of the country’s imports and is crucial to transportation of human, physical capital, and consumer goods.
“Therefore”, Mr Muhingo, who is also an economist, said “falling fuel prices means less pressure on the shilling and inflation,” He told ‘Daily News’ yesterday that inflation was already stable, although the increased food insecurity in neighbouring countries especially Kenya and South Sudan may further stress domestic food prices.
“…Then falling fuel prices shall release some of that pressure from the consumers’ basket prices,” Mr Muhingo said.
Also a stable shilling attracts Foreign Direct Investments (FDIs) and Foreign Portfolio Investments (FPIs).
“A stable currency lowers exchange rate risks and attracts [FDIs and] FPIs,” Orbit head of research and analytics said.
EWURA report showed that retail and wholesale prices for petrol, diesel and kerosene imported through Dar es Salaam port have decreased by between 7.0 per cent and 19 per cent this month compared to last month.
The retail prices of petrol, diesel and kerosene decreased by 219/- a litre, 143/-a litre and 355/-a litre respectively. The wholesale prices almost went down to the similar range with retail’s.
Tanga petrol and diesel consignments have dropped drastically by 463/-a litre and 377/-a litre respectively.
However, retail and wholesale prices of diesel in the southern regions–Mtwara, Lindi and Ruvuma—continued to be the same because no new consignment was received.
However, retail and wholesale prices of petrol have decreased by 129/-a litre and 128/14 a litre respectively.
Crude oil prices were down on Wednesday with the expectation of another increase in US crude inventories.
International benchmark Brent crude was trading at 30.71 US dollars per barrel at 0617 GMT for a 0.84 per cent loss after it closed Tuesday at 30.97 US dollars a barrel.
American benchmark West Texas Intermediate (WTI), was at 24.24 US dollars a barrel at the same time for a 1.3 per cent decline after ending the previous day at 24.56 US dollars per barrel.
On Tuesday, Brent crude jumped 13.8 per cent and WTI soared 20.4 per cent with some normalization steps taken in Asian and European countries to ease Covid-19 restrictions, the consequences of which investors see as increasing global oil demand.
