By Our Correspondent, DODOMA
Tanzania
Tanzania will spare motorists and households high pump price increases next month after the government announced a Tsh100 billion ($43 million) fuel subsidy on Tuesday.
Speaking in Parliament, Energy
minister January Makamba (pictured) said President Samia Hassan’s administration is also
in the final stages of securing loans from the World Bank and the International
Monetary Fund (IMF) to help ease the high cost of living, worsened by
increasing petroleum prices.
“Given the needs of the
people, views and advice from members of Parliament and party directives, the
government will provide a subsidy of Tsh100 billion for reducing oil prices in
the country,” Mr Makamba told MPs.
Simmering public outcry over
the high cost of fuel, which has caught the attention of top politicians,
prompted a flurry of meetings involving the President, the Prime Minister,
ministers of energy and finance, the taxman and officials from the petroleum
agencies.
Tanzania will spare motorists
and households high pump price increases next month after the government
announced a Tsh100 billion ($43 million) fuel subsidy on Tuesday.
The Sh100 billion subsidy will
take effect in June, Mr Makamba said. Oil marketers have already paid fuel
costs for May, which are reflected in the current pump prices.
Last week, the Energy and
Water Utilities Regulatory Authority (Ewura) announced record-high prices,
which took effect on May 4.
Petrol increased by 9.5
percent, diesel at 17.1 percent, while kerosene went up by 16 percent. In
April, prices rose by 12 percent for petrol, with diesel and kerosene surging
by 21 percent.
In the coastal city of Dar es
Salaam, the country’s commercial hub, petrol is retailing at Tsh3,148 ($1.36)
per litre, diesel Tsh3,258 ($1.40) and kerosene is selling at Tsh3,112 ($1.34)
per litre.
The government also plans to
allow more private oil companies to import fuel directly.
“Energy ministry has completed
the evaluation of all companies that have shown that they can deliver fuel at
lower prices in a bid to ensure the security of supply,” noted Mr Makamba.
According to the ministry, the
government will establish a Fuel Price Stabilisation Fund to cushion consumers
from the otherwise high prices amid rising crude oil costs.
Tanzania will also set up a
large fuel depot (Petroleum Hub) and National Strategic Petroleum Reserve.
Currently, the country has oil
to last 27 days, Mr Makamba said on Tuesday.
“If these plans bring expected
results, then fuel prices will decline further from August 2022,” he added.
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