In what appears to be a swift intervention to end the oil-price wrangle, the Energy and Water Utilities Regulatory Authority (Ewura) yesterday set lower pump prices to be charged at all filling stations in the country effective Monday next week. The indicative and cap prices show that the price of petrol will drop by around 400/- per litre, an almost 30 per cent drop of the old price, while that of diesel goes down by 300/-and Kerosene by around 15/-. In a strong statement yesterday, Ewura cautioned oil dealers against defying set retail prices, warning that defaulters would pay a penalty of not less than 300m/- and have their licenses cancelled. Ewura Director General Haruna Masebu told a news conference in Dar es Salaam that the intervention was necessary after the watch-dog had learnt that oil dealers ``are not being cooperative.`` According to him, uncooperative and greedy oil dealers had hiked pump prices by 7.5 per cent, something which the Ewura boss said was unfair and completely unacceptable. Masebu clarified that oil marketing companies would be free to sell petroleum products at prices that give them competitive edge, provided that they do not exceed the price cap for each particular product. He noted that for the time being the indicative and cap prices set by Ewura and made public yesterday had been sent to the Attorney General?s office and will be gazetted in two weeks` time. Masebu insisted that an account of defaulters of retail prices set by his watch-dog would be taken effective Monday and they would start facing the consequences after two weeks. Masebu further said that the prices were set from actual costs incurred by dealers and by gauging the distance of other regions, insisting that all filling stations should publish on clearly visible boards prices charged for each petroleum product. He added that the price boards should be located in clearly visible places in front of filling stations and should clearly show prices charged, discounts offered and any trade incentives or promotion on offer. He noted that in line with the government policy for competitive sectors that supply and demand are the price determinants, Ewura shall continue to encourage competition by gathering and making available petroleum product pricing information. Commenting on oil importers that have ruled out the possibility of lowering pump prices for the time being, saying they bought the current stock at a high price, Masebu said that the dealers have a choice of abiding by the set prices or face consequences. Ewura Director of Legal Affairs Muna Mahanyu said licenses of defaulters will be taken away and culprits forced to part with not less than 300m/- on each day they commit the offence. ``If the mistake is repeated, every now and then we get hold of you for not being cooperative by imposing a penalty of at least 300m/-,`` said Mahanyu. However, in a quick reaction yesterday, one oil dealer, ORYX when reached for comments faulted Ewura for being unfair on oil dealers saying they knew nothing about the criteria applied by the watchdog to make the intervention. ORYX Terminal Manager at Kurasini oil deport George Kiiru told The Guardian in a telephone interview that the best option was for Ewura and oil dealers to sit together and decide on the matter. ``The government cannot move in to set prices for the dealers knowing that our country follows a free market economy,`` said Kiiru. Indicative and cap prices announced by Ewura are as follows: In Dar es Salaam petrol will sell from 1166/-, Arusha 1,262/-, Dodoma 1,235/-, Iringa 1,251/-, Bukoba 1,423/-, Kigoma 1,423/-, Moshi 1,244/-, Lindi 1,262/-, Mbeya1,269/-, Musoma 1,406/-, Babati 1,282/-, Morogoro 1,204/-, Mwanza 1,375/-, Mtwara 1,246/-, Kibaha 1,196/-, Sumbawanga 1,309/-, Songea 1,284/-, Singida 1,298/-, Tabora 1,298/- and Tanga 1,235/-. Diesel: Arusha 1367/-, Dar es Salaam 1,271/-, Dodoma 1,340/-, Iringa 1,356/-, Bukoba 1,528/-, Kigoma 1,528/-, Moshi 1,349/-, Lindi 1,367/-, Mbeya 1,374/-, Musoma 1,511/-, Babati 1,387/-, Morogoro 1,309/-,Mwanza 1,480/-, Mtwara 1,351/-, Kibaha 1,301/-, Sumbawanga 1,413/-, Songea 1,388/-, Singida 1,358/-, Shinyanga 1,403/-, Tabora 1,402/- and Tanga 1,340/-. Kerosene: Arusha 910/-, Dar es Salaam 814/-, Dodoma 883/-, Iringa 899/-, Bukoba 1,071/-, Kigoma 1,071/-, Moshi 892/-, Lindi 910/-, Mbeya 917/-, Musoma 1,054/-, Babati 930/-, Morogoro 852/-, Mwanza 1,023/-, Mtwara 894/-, Kibaha 844/-, Sumbawanga 957/-, Songea 932/-, Singida 901/-, Shinyanga 946/-, Tabora 946/- and Tanga 883/-.