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Fuel prices record 20pc hike, as the shilling weakens further

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BAK, May 17, 2010.

  1. BAK

    BAK JF-Expert Member

    May 17, 2010
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    Fuel prices record 20pc hike, as the shilling weakens further

    By Polycarp Machira

    16th May 2010

    Petroleum prices in the local market have increased by over 20 percent over the past one year despite government efforts to control pump prices by regularly increasing indicative prices.
    According to a press statement issued by the watch-dog`s Director General Haruna Masebu, there is a slight increase in the price of petrol and diesel, especially in the city of Dar es Salaam.

    For the Dar es Salaam city, the new indicative price for petrol is Sh1,590/per litre and the cap price is Sh1,740. The indicative price for diesel is Sh1,585 per litre and the cap price is Sh1,704. Kerosene's indicative price for Dar es Salaam is Sh1,212 per litre while the cap price is Sh1,205.
    Indicative prices for other regions are as follows :

    In Kigoma petrol will sell at Sh1821 and Sh1,958 for indicative and cap respectively, while in Mwanza it sells at Sh1,740 and Sh1,871 for indicative and cap prices.
    Diesel; Mwanza Sh1,446 and Sh1,554 for indicative and cap prices respectively, while in Kigoma it sells at Sh1825 for indicative and Sh1952 for cap price.

    Kerosene; Mwanza Sh1,270 as indicative price and Sh1,366 for cap price while the same product sells at Sh1,352 and Sh1,453 for both indicative and cap price in Kigoma.

    In the second week of May last year, the indicative and cap prices of petrol were as follows: In Dar es Salaam petrol was sold at Sh1,325 and Sh1,424 for indicative and cap prices, Kigoma; Sh1,525 and Sh1,639, while in Mwanza it was Sh1,475 and Sh1,585 for indicative and cap prices.

    Diesel: Dar es Salaam, Sh1,293, and Sh1393 ; Kigoma, Sh1,1496 and Sh1,609 ; Mwanza Sh1,446 and Sh1,554 for indicative and cap prices.
    Kerosene: Dar es Salaam, Sh827; Mwanza Sh976; Kigoma Sh1,027.

    But speaking to The Guardian on Sunday on phone yesterday, Masebu said fuel prices are determined by the international market and not by the government as was the case before economic liberalisation.

    He said weaker local currency against dollar is one of the major causes of the price increase, adding' "The price cap has been set at 7.5 per cent of the indicative prices computed in accordance with the approved formula, `` he explained.
    The current exchange rate is Sh1,360 for one US dollar.