Fuel to cost less as global prices drop

Tuesday January 8 2019

A female petrol pump attendant.

A female petrol pump attendant. In October, the world market price of petrol increased to $707 per tonne, $721 per tonne for diesel and $757 per tonne for kerosene. PHOTO | REUTERS 

By ROSE MIREMBE
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Motorists in the region will enjoy lower prices for petrol, diesel and kerosene in the New Year, compared with those in November and December, thanks to a drop in world prices.

In Tanzania, the price of petrol has dropped by 5.8 per cent, diesel 8.69 per cent, and kerosene 7.03 per cent effective January 2.

In Kenya, petrol is down by 8.46 per cent, diesel by 2.58 per cent and kerosene by 11.12 per cent.

According to Tanzania’s Energy and Water Utilities Regulatory Authority (Ewura), the price changes in petroleum products received through the Tanga port and Dar es Salaam are mainly due to a decrease in world oil market prices and increases in the basis point (BPS) premiums — the percentage change in the value of a financial instrument.

In a statement, Ewura acting director-general, Nzinyangwa Mchany said the global price for petrol imported through the Dar es Salaam port decreased by $71.898 per tonne, while diesel and kerosene dropped by $115.9 per tonne and $112.45 per tonne respectively.

At the same time, premiums for BPS rose by $12.98 per tonne and $10.72 per tonne, and $26 per tonne for petrol, diesel and kerosene.

Retail prices

Retail prices for petrol, diesel and kerosene have fallen by Tsh141 per litre ($0.06) Tsh212 per litre (US cents 9) and Tsh167 per litre (US cents 7), respectively this January.

The authority said since there were no new consignments of petroleum products imported through the Mtwara port in December, petrol station operators in Mtwara, Lindi and Ruvuma regions are advised to source their products from Dar es Salaam.

Dar es Salaam port clears transit fuel to landlocked countries like Zambia, the Democratic Republic of Congo, Malawi, Burundi and Rwanda.

Kenya prices

Similarly, Kenya’s Energy Regulatory Commission said that the free on board cost for urban crude oil lifted in November last year, decreased by 17 per cent, and over the same period the mean monthly dollar to the exchange rate appreciated by 1.27 per cent, from Ksh101.6 in October 2018 to Ksh102.44 in November.

The ERC announced an adjustment of super petrol, diesel and kerosene by Ksh4.57 (4 US cents) per litre, Ksh0.55/litre, (0.5 US cents) and Ksh6.61 (6 US cents) per litre effective from December 15.

The pump prices in Nairobi stood at Ksh118.11 ($1.15) per litre for petrol, Ksh11.83 (0.12) for diesel and Ksh111.82 ($1.09) for kerosene on December 14.

Uganda consumers currently buy diesel at Ush3,850 ($1.03) per litre, and petrol at Ush4,150 ($1.11) per litre down from last month’s prices of Ush4293 ($1.14) per litre for petrol, and Ush4,004 ($1.07) per litre for diesel.

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