Tanzania has suspended increases in petroleum product price announced just two days earlier on Tuesday, and formed a team to investigate economic indicators driving fuel prices up.

Godfrey Chibulunje, acting director general of the Energy and Water Utilities Regulatory Authority (Ewura) said Thursday that the government has opted to retain the old prices, since all indications were that prices would continue to rise anyway.

“The team will be led by officials from the ministry of Finance and Planning, ministry of Energy and Minerals, the Tanzania Revenue Authority, Ewura and other institutions involved,” said Chibulunje.

On Tuesday, while announcing the new prices Ewura said the changes were attributed to world oil market prices and raised prices from Tsh2,381.04 ($5.50) per litre for petrol to Tsh2,511 ($5.80) per litre; Tsh2,161.12 ($4.99) per litre for diesel upped to Tsh2,291 ($5.29) per litre and kerosene ramped up from Tsh2,065.09 (4.78) per litre to Tsh2,194 ($5.07) per litre.

According to Bank of Tanzania (BoT) monthly review for August domestic pump prices of petroleum products in Tanzania have risen moderately since June 2020 reflecting world market prices.

The BoT report added that this trend was partly fuelled by increased demand, associated with the recovery of global economy.

In July, petrol, diesel and kerosene prices registered an annual increase of 39.7, 28 and 24.2 percent, respectively, attributed to high prices in the world market.

These price changes are due to fluctuations in oil prices in the world market and transport costs, “said the report on separate periods except in July where, despite these factors, there were changes in tariffs and fees for oil.