Tanzania has proposed a review of its fuel import system to address price fluctuations that lead to high pump prices.
Energy regulatory authorities said they are monitoring the effectiveness of the current bulk oil importation through tendering to ensure stability of the monthly capped prices determined by global fuel markets.
The Bulk Procurement System (BPS) used to import petroleum products may be overhauled if officials find it inefficient, said the Energy and Water Utilities Regulatory Authority (Ewura).
Ewura Director General James Andilile said on Tuesday that initial assessment on oil market has been conducted to ensure that many local oil marketing companies partake the importation of fuel and review of the entire price planning system.
Regulations
“We have carried out changes in the regulations to encourage more companies to enter into the bidding process,” he said.
“We have regulated the pricing formula subject to the regulator’s procedures on monthly tariff to control fuel hoarding,” Mr Andilile said.
Ewura had last week lowered fuel prices for November. Price of petrol in November was capped at Tsh3,274 ($1.3) per litre in Dar es Salaam, Tsh3,320 ($1.32) in Tanga and Tsh3,347 ($1.33) in Mtwara.
Diesel will be sold at Tsh3,374 ($1.3) in Dar es Salaam, Tsh3,510 ($1.4) in Tanga) and Tsh3,546 ($1.41) in Mtwara while kerosene prices have been pegged at Tsh3,423 ($1.36) in Dar es Salaam, Tsh3,469 ($1.38) in Tanga and Tsh3,495 ($1.4) in Mtwara.
In October, fuel prices in Tanzania increased for the fourth consecutive month, with diesel taking the biggest hit.
