Tanzania’s Energy and Water Utilities Authority (EWURA) yesterday announced a slight increase in the prices of petrol and diesel starting today.
According to EWURA head of communications Titus Kaguo, the price of petrol has gone up by 25/- to 2,052/- per litre in Dar es Salaam, while diesel will be sold at 1,888/- per litre, an increase of 43/-.
Kaguo told a press conference yesterday that the latest price hikes were in line with prevailing world market prices coupled with a further depreciation of the shilling against the US dollar.
But he said the price of kerosene has dropped by 17/- to 1,825/- per litre from today, attributing this to improved local transportation costs.
In Arusha, petrol will be sold at 2,136/-, diesel 1,972/- and kerosene 1,908/-, while in the new capital Dodoma the new price of petrol is 2,110/- , diesel 1,946/-, and kerosene 1,883/-.
Kaguo said EWURA now plans to announce prevailing petroleum product prices every first Wednesday of the month.
The latest announcement comes on the back of tumbling world oil prices following the move by Saudi Arabia, Egypt and Bahrain to cut ties with Qatar, sparking fears that the Organisation of Petroleum Exporting Countries (OPEC)'s fragile deal to limit production could come undone.
Brent crude initially jumped after Saudi and its allies accused Doha of supporting terrorism, before slipping back below the crucial $50 mark.
It is feared escalating tensions in the Middle East region could mean the failure of OPEC's deal to cap oil production until next year in the hope of limiting supply to raise prices.
Each state within the OPEC cartel, led by Saudi Arabia, last week agreed to stay within a production quota for another nine months.
The deterioration in relations among the Middle East neighbours has also sent gold prices higher. The precious metal is now at its highest value since April amid the political turmoil.
Experts said the surprise decision led by Saudi Arabia to cut ties with Qatar left many investors puzzled on how this outcome may impact oil prices.