Oil prices drop in Tanzania

REF: PPR/2022 - 9/1

PUBLIC NOTICE ON CAP PRICES FOR PETROLEUM PRODUCTS EFFECTIVE WEDNESDAY, 7TH SEPTEMBER 2022

The Energy and Water Utilities Regulatory Authority (EWURA) hereby publishes Cap Prices for petroleum products, applicable in Tanzania Mainland.

These wholesale and retail prices are applicable effective Wednesday, 7th September 2022. The prices of oil in the World Market for July 2022 decreased compared to the prices for June 2022.

Hence, the fuel prices in the local market decreased as well at a range between TZS 271/litre and TZS 362/litre for petrol and by TZS 430/litre for kerosene compared with the subsidized prices of August 2022.

For the case of diesel, except for diesel in Tanga whose price decreased by TZS 13/litre, the September 2022 prices
increased by TZS 37/litre and TZS 86/litre for Dar es Salaam and Mtwara, respectively, compared to the subsidized prices of August 2022.

To continue reducing the effect of increasing fuel prices to the country whereby most of the economic activities depend on diesel and also reducing a gap between petrol and diesel prices, the Government has issued a subsidy of TZS 65 billion for the September 2022 fuel prices.

The Government intervention by issuing the subsidy has reduced the petroleum products prices for
September 2022 as shown in the Table 1

In order to implement these prices, wholesalers and retailers of the petroleum products are required to adhere to the following: -

(a) EWURA would like to remind the public that these cap prices can be accessed through mobile phones by dialling *152*00# and then following the provided instructions. This service is free of charge and is available in all mobile phone service providers in the country.

(b) In line with the prevailing sector legislation (Petroleum Act, 2015, section 166), prices of petroleum products are governed by rules of demand and supply.

EWURA shall continue to encourage competition in the sector by making available petroleum products pricing information including cap prices.

This information on prices is intended to enable stakeholders to make informed decisions on petroleum prices at any particular time.

(c) Oil Marketing Companies are free to sell their products at a price that gives them a competitive advantage provided that, such price does not exceed the price cap and is not below the floor price for the relevant product as it is computed using the approved formula and EWURA (Petroleum Products Prices Setting) Rules 2022, which were gazetted through the Government Notice No. 57 published on 28th January 2022.

(d) All petrol stations are required to publish petroleum product prices on clearly visible boards. The price boards should clearly show prices charged, discounts offered as well as any trade incentives or promotions on offer. Consumers are encouraged to purchase from stations that sell products at the most competitive prices and offer better services.

It is an offense not to have prices published on boards located in clearly visible places in front of petrol stations. Failure to adhere to this directive will attract punitive measures from EWURA.

(e) Retailers must issue receipts printed from an Electronic Fiscal Pump Printer (EFPP) for all sales that they make. In addition, consumers are required to demand and keep those receipts that clearly show the name of the petrol station, the date on which such purchase was made as well as, the type of petroleum product (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 do not meet the approved specifications and provide an assurance that appropriate government taxes on sales of petroleum products are fully accounted for recovery from the Retailers.

(f) Retailers of the Petroleum products are required to sell petroleum products at the price with subsidy as indicated in Table 3. Legal action will be taken against any retailer who fails to comply with these instructions.

(g) Wholesalers of the Petroleum products are required to sell petroleum products at the price with subsidy as indicated in Table 4 except to customers with tax exemption. Legal action will be taken against anywholesaler who fails to comply with these instructions.


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