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Dealers stick to high prices
2009-01-01 11:46:17
By Angel Navuri
Oil importers have ruled out the possibility of lowering pump prices for the time being, saying they bought the current stock at high price.
The oil dealers, including British Petroleum (BP), Gulf Africa Petroleum Company (Gapco), Oilcom and ORYX, gave their stance on Tuesday, during separate interviews with `The Guardian` in Dar es Salaam.
They were generally emphatic that the matter of oil prices as for now would be ``difficult to settle`` in spite of efforts being made by the Energy and Water Utilities Regulatory Authority (Ewura), apparently because they were still clearing the old stock.
``At this moment, there is no way that we can cut down the price as the government wants or make local prices correspond to those of the global market.
The consignment which we purchased at the time global prices were up is yet to be cleared,`` said ORYX Terminal Manager at Kurasini oil depot, George Kiiru.
He said the nation was experiencing the high pump prices due to shortage of the commodity experienced over the past month, as oil shipments purchased recently were yet to arrive at Dar es Salaam port.
Kiiru said they were still waiting for arrival of ships that would bring petroleum products bought at comparatively low prices.
A survey carried out at various filling stations in Dar es Salaam over the last two days showed that there was a slight reduction in pump prices, just hours after the government directed Ewura to discuss pump prices with oil dealers.
Prices on display were ranging between 1,450/- and 1,500/- per liter for petrol down from 1,700/- and diesel was being sold at 1,280/- per liter, down from 1, 350/-. The price of kerosene remained constant at 800/-.
A Gapco official, who preferred anonymity, said oil-dealers could not operate under pressure from the government, especially when it came to setting up prices.
He maintained that oil prices would always be determined by the market itself.
An Oilcom official said under free market operation, oil dealers would set prices, depending on how much they had spent in importing the deliveries.
``If the prices are high out there, it is because the dealers are forced to charge more, depending on how much they spent in securing the commodity from the global market,`` said the official who didn`t want his name published in a newspaper.
A BP official, speaking on condition of anonymity, said the government should not pressure oil dealers to cut down prices as it was aware of the real situation.
``I don`t understand why it is giving us a headache about slashing down the prices,`` he said.
However, a cross section of Dar es Salaam residents blamed the government for failing to make a timely intervention on the issue.
A city-based stationary operator, Zaituni Maalim, said even if it was a free market operation, there must be some way for the government to limit oil dealers from forming cartels and victimising consumers.
``The government is not serious. They keep ordering Ewura to settle the matter with the dealers, but that has proved to be useless.
The government, in my opinion, has the last word on all affairs affecting its citizens,`` said Maalim.
Another resident, Blandina Bobson, blamed the energy and water sector watch-dog Ewura for failing to regulate the oil industry and ``for general poor work performance.``
``The whole issue is just so abnormal. There is politics in it. If the government won`t be serious on the issue, it could be pushed into a bad corner,`` said Bobson.
Ernest Lyimo and Mary Joseph shared the view that apart from the expenses that the dealers incurred, they were obliged to take into account the country`s interests because oil was a very sensitive issue due to the role it played in the national economy.
However, a National Bank of Commerce (NBC) official, Joseph Kilanga, said oil dealers had a point because they normally charged depending on the cost they had purchased the goods.
``The tug of war between the government and dealers occurs because there is no way oil merchants can slash the charges simply because global market prices have dropped drastically,`` he said.
SOURCE: Guardian
2009-01-01 11:46:17
By Angel Navuri
Oil importers have ruled out the possibility of lowering pump prices for the time being, saying they bought the current stock at high price.
The oil dealers, including British Petroleum (BP), Gulf Africa Petroleum Company (Gapco), Oilcom and ORYX, gave their stance on Tuesday, during separate interviews with `The Guardian` in Dar es Salaam.
They were generally emphatic that the matter of oil prices as for now would be ``difficult to settle`` in spite of efforts being made by the Energy and Water Utilities Regulatory Authority (Ewura), apparently because they were still clearing the old stock.
``At this moment, there is no way that we can cut down the price as the government wants or make local prices correspond to those of the global market.
The consignment which we purchased at the time global prices were up is yet to be cleared,`` said ORYX Terminal Manager at Kurasini oil depot, George Kiiru.
He said the nation was experiencing the high pump prices due to shortage of the commodity experienced over the past month, as oil shipments purchased recently were yet to arrive at Dar es Salaam port.
Kiiru said they were still waiting for arrival of ships that would bring petroleum products bought at comparatively low prices.
A survey carried out at various filling stations in Dar es Salaam over the last two days showed that there was a slight reduction in pump prices, just hours after the government directed Ewura to discuss pump prices with oil dealers.
Prices on display were ranging between 1,450/- and 1,500/- per liter for petrol down from 1,700/- and diesel was being sold at 1,280/- per liter, down from 1, 350/-. The price of kerosene remained constant at 800/-.
A Gapco official, who preferred anonymity, said oil-dealers could not operate under pressure from the government, especially when it came to setting up prices.
He maintained that oil prices would always be determined by the market itself.
An Oilcom official said under free market operation, oil dealers would set prices, depending on how much they had spent in importing the deliveries.
``If the prices are high out there, it is because the dealers are forced to charge more, depending on how much they spent in securing the commodity from the global market,`` said the official who didn`t want his name published in a newspaper.
A BP official, speaking on condition of anonymity, said the government should not pressure oil dealers to cut down prices as it was aware of the real situation.
``I don`t understand why it is giving us a headache about slashing down the prices,`` he said.
However, a cross section of Dar es Salaam residents blamed the government for failing to make a timely intervention on the issue.
A city-based stationary operator, Zaituni Maalim, said even if it was a free market operation, there must be some way for the government to limit oil dealers from forming cartels and victimising consumers.
``The government is not serious. They keep ordering Ewura to settle the matter with the dealers, but that has proved to be useless.
The government, in my opinion, has the last word on all affairs affecting its citizens,`` said Maalim.
Another resident, Blandina Bobson, blamed the energy and water sector watch-dog Ewura for failing to regulate the oil industry and ``for general poor work performance.``
``The whole issue is just so abnormal. There is politics in it. If the government won`t be serious on the issue, it could be pushed into a bad corner,`` said Bobson.
Ernest Lyimo and Mary Joseph shared the view that apart from the expenses that the dealers incurred, they were obliged to take into account the country`s interests because oil was a very sensitive issue due to the role it played in the national economy.
However, a National Bank of Commerce (NBC) official, Joseph Kilanga, said oil dealers had a point because they normally charged depending on the cost they had purchased the goods.
``The tug of war between the government and dealers occurs because there is no way oil merchants can slash the charges simply because global market prices have dropped drastically,`` he said.
SOURCE: Guardian