Tanzanians are preparing for harsher times because, despite government subsidies, fuel prices increased nationwide beginning of this past Wednesday.
The Energy and Water Utilities Regulatory Authority (EWURA) reports that prices for gasoline, fuel, and kerosene have reached previously unheard-of heights in the local market.
According to a statement from the regulator, as of July 6, 2022, a litre of gasoline would cost Tsh3,220 ($1.38) in Dar es Salaam, up from Tsh2,994 ($1.28) last month, while a litre of diesel will cost Tsh3,143 ($1.35), up from Tsh3,131 ($1.34).
Kerosene will cost Tsh3,442 ($1.48) a litre at retail, up from Tsh3,299 ($1.41) last month. The price of a litre of gasoline can reach Tsh3,435 ($1.47) in some areas, such as Kagera.
However, without the government’s Tsh100 billion ($42 million) a month subsidy, which started in June, the prices would have been significantly higher.
“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,” Ewura said in a statement signed by its director general Modestus Lumato.
Meanwhile, in June, Tanzania signed a framework agreement with Equinor of Norway and Shell of the United Kingdom, bringing them one step closer to starting construction on a $30 billion project to export liquefied natural gas (LNG).
The agreement calls for a final investment decision by 2025 and the start of operations at a liquefied natural gas plant to be built in Tanzania’s southern coastal town of Lindi by 2029-2030.
It is a significant step forward in Tanzania’s efforts to begin exporting a portion of the vast gas deposits off its coast, which are estimated to be worth more than 57 trillion cubic feet.