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- Feb 11, 2007
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Oil prices up despite global drop
2008-12-27 11:33:19
By Angel Navuri and Patrick Kisembo
Just a few days since oil prices hit below USD 36 in the world market the lowest in more than four years pump prices in Dar es Salaam shot up by 12.5 percent yesterday.
Petrol in many filling stations in Dar es Salaam was sold at between 1600/- and 1700/- from the previous 1450/- and 1500/- per litre.
Diesel was as of yesterday sold at 1500/-, up from 1400/- per litre sold before Christmas.
Ironically, in Zambia`s capital of Lusaka, fuel prices are lower than in Dar es Salaam with petrol selling at Kwacha 5,818 (Tsh 1544/-) per litre and diesel at Kwacha 5,478 (Tsh 1,453) per litre.
The Lusaka prices became effective on Wednesday, when the Zambian government imposed a 24 per cent reduction on petroleum products prices, following the sharp decline of global oil prices.
Zambia, a landlocked country, imports its fuel through Tanzania but is still able to sell fuel at lower prices in spite of the huge transport costs.
When asked by The Guardian as to why petroleum dealers in Tanzania were seen to be more powerful than the government, and if the whole issue was shrouded with corruption, the deputy minister for Energy and Minerals Adam Malima gave a curt reply: ``Please contact Ewura Director General Haruna Masebu for an answer.``
The Guardian reporter also asked the deputy minister as to why the Zambian government was able to make oil dealers comply with its order, while in Tanzania; the case seemed to be the opposite.
Malima said: ``We shall work on Ewura`s report on the matter.``
Speaking on behalf of Ewura Director General Haruna Masebu, who is on leave, Energy and Water Utilities Regulatory Authority Chief Petroleum Inspector Eng Julius Gashaza said the problem of hiked oil prices was a headache to the government.
Gashaza said oil dealers had become quite stubborn.
``We need to sit down together with oil dealers to find a way to solve the problem which has now become very difficult,`` said Gashaza.
Oil fell below USD 36 last Saturday to the lowest level in more than four years as global economic slowdown overshadowed OPEC`S record supply cuts.
Despite the prices drop in the world market, pump prices in the local market have not reflected the decline.
Last month the government gave oil companies an ultimatum to reduce prices of oil to levels that reflect current global petroleum prices.
Energy and Minerals minister William Ngeleja said although the government policy and legislation allowed for freely competitive and liberalised downstream fair prices to consumers, the government would not sit back and watch as oil companies milked consumers for no good reason.
The Energy and Water Utilities Regulatory Authority (Ewura) held a meeting with oil firms early this month and agreed that local prices should reflect the fall in world oil prices.
However, according to Ewura Director General Haruna Masebu, no relief is being passed on to end users of petroleum products, thus the regulator may have to start fixing prices.
Indicative prices for the fourth week of October for Dar es Salaam showed that petrol, diesel and kerosene should retail at 1,467.65/- ($1.39), 1,517.82/- ($1.45) and 1,041.05/- ($0.99) per litre respectively while pump prices were 1,590/- ($1.51), 1,790/- ($1.70) and 1,370/- ($1.30).
According to Masebu, compared with the drop in world market petroleum prices with local pump prices, it is evident that petroleum companies in Tanzania have not reduced their prices to expected levels.
The Tanzania Association of Oil Markets has, however, said that it is virtually impossible for oil dealers to reduce pump prices as they differ from one exporter to another, depending on time of arrival of a particular consignment.
Tanzania has 31 oil marketing companies and 950 service stations spread throughout the country, with more being put up almost every other week.
SOURCE: Guardian
2008-12-27 11:33:19
By Angel Navuri and Patrick Kisembo
Just a few days since oil prices hit below USD 36 in the world market the lowest in more than four years pump prices in Dar es Salaam shot up by 12.5 percent yesterday.
Petrol in many filling stations in Dar es Salaam was sold at between 1600/- and 1700/- from the previous 1450/- and 1500/- per litre.
Diesel was as of yesterday sold at 1500/-, up from 1400/- per litre sold before Christmas.
Ironically, in Zambia`s capital of Lusaka, fuel prices are lower than in Dar es Salaam with petrol selling at Kwacha 5,818 (Tsh 1544/-) per litre and diesel at Kwacha 5,478 (Tsh 1,453) per litre.
The Lusaka prices became effective on Wednesday, when the Zambian government imposed a 24 per cent reduction on petroleum products prices, following the sharp decline of global oil prices.
Zambia, a landlocked country, imports its fuel through Tanzania but is still able to sell fuel at lower prices in spite of the huge transport costs.
When asked by The Guardian as to why petroleum dealers in Tanzania were seen to be more powerful than the government, and if the whole issue was shrouded with corruption, the deputy minister for Energy and Minerals Adam Malima gave a curt reply: ``Please contact Ewura Director General Haruna Masebu for an answer.``
The Guardian reporter also asked the deputy minister as to why the Zambian government was able to make oil dealers comply with its order, while in Tanzania; the case seemed to be the opposite.
Malima said: ``We shall work on Ewura`s report on the matter.``
Speaking on behalf of Ewura Director General Haruna Masebu, who is on leave, Energy and Water Utilities Regulatory Authority Chief Petroleum Inspector Eng Julius Gashaza said the problem of hiked oil prices was a headache to the government.
Gashaza said oil dealers had become quite stubborn.
``We need to sit down together with oil dealers to find a way to solve the problem which has now become very difficult,`` said Gashaza.
Oil fell below USD 36 last Saturday to the lowest level in more than four years as global economic slowdown overshadowed OPEC`S record supply cuts.
Despite the prices drop in the world market, pump prices in the local market have not reflected the decline.
Last month the government gave oil companies an ultimatum to reduce prices of oil to levels that reflect current global petroleum prices.
Energy and Minerals minister William Ngeleja said although the government policy and legislation allowed for freely competitive and liberalised downstream fair prices to consumers, the government would not sit back and watch as oil companies milked consumers for no good reason.
The Energy and Water Utilities Regulatory Authority (Ewura) held a meeting with oil firms early this month and agreed that local prices should reflect the fall in world oil prices.
However, according to Ewura Director General Haruna Masebu, no relief is being passed on to end users of petroleum products, thus the regulator may have to start fixing prices.
Indicative prices for the fourth week of October for Dar es Salaam showed that petrol, diesel and kerosene should retail at 1,467.65/- ($1.39), 1,517.82/- ($1.45) and 1,041.05/- ($0.99) per litre respectively while pump prices were 1,590/- ($1.51), 1,790/- ($1.70) and 1,370/- ($1.30).
According to Masebu, compared with the drop in world market petroleum prices with local pump prices, it is evident that petroleum companies in Tanzania have not reduced their prices to expected levels.
The Tanzania Association of Oil Markets has, however, said that it is virtually impossible for oil dealers to reduce pump prices as they differ from one exporter to another, depending on time of arrival of a particular consignment.
Tanzania has 31 oil marketing companies and 950 service stations spread throughout the country, with more being put up almost every other week.
SOURCE: Guardian