Dar es Salaam – Motorists and businesses across the country are set to benefit from a continued drop in the retail prices of petrol and diesel.
The Energy and Water Utilities Regulatory Authority (EWURA) confirmed that starting in October, petrol prices will decrease by Sh55 per litre, with diesel falling by Sh50. In the nation’s commercial hub, Dar es Salaam, a litre of petrol will now cost Sh2,752, down from Sh2,807, while diesel will be priced at Sh2,704.
According to EWURA’s Director General, Dr James Mwainyekule, the price drop is primarily attributed to a significant 5.10 per cent decrease in the cost of foreign currency exchange and a 1.95 per cent reduction in the import costs for petrol arriving at the Dar es Salaam port.
However, the price of kerosene, a vital commodity for many low-income households for lighting and cooking, will remain unchanged from September’s prices.
This price adjustment places Tanzania in a highly competitive position within the East African Community. When converted to US dollars, a litre of petrol in Tanzania now costs approximately $1.20.
This is notably lower than in neighbouring countries. In Kenya, the price hovers around $1.42, while in Uganda, it reaches as high as $1.45. Rwanda’s petrol price stands at about $1.28 per litre, making Tanzania’s fuel the most affordable among the four nations.
The reduction in fuel costs is expected to lower transportation expenses, a significant part of daily household budgets. This relief extends beyond personal travel, as it is anticipated to reduce the operational costs for businesses, particularly in sectors like agriculture and manufacturing that rely heavily on transport.
Experts believe that this will help to ease inflationary pressures, potentially leading to lower prices for essential goods and services. This creates a positive ripple effect, boosting household purchasing power and stimulating broader economic activity.
While the continued decrease in petrol and diesel prices signals positive economic momentum, the static price of kerosene highlights a persistent challenge for the most vulnerable households.
But EWURA believes that the overall trend offers a promising outlook for economic stability and growth, providing tangible financial relief to millions of citizens and strengthening the nation’s economic standing in the region.
