{"id":464421,"date":"2011-07-19T14:04:41","date_gmt":"2011-07-19T14:04:41","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/07\/19\/ewura-still-grappling-with-prices-of-petroleum-products\/"},"modified":"2011-07-19T14:04:41","modified_gmt":"2011-07-19T14:04:41","slug":"ewura-still-grappling-with-prices-of-petroleum-products","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/07\/19\/ewura-still-grappling-with-prices-of-petroleum-products\/","title":{"rendered":"EWURA Still Grappling With Prices of Petroleum Products"},"content":{"rendered":"
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Tanzania Daily News<\/a> (Dar\u00a0es\u00a0Salaam)<\/p>\n

Sebastian Mrindoko<\/p>\n

18 July 2011<\/p>\n

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FUEL pricing was the most asked question by visitors at the just ended 35th Dar es Salaam International Trade Fair (DITF), expressing their distrust to the Energy and Water Utilities Regulatory Authority (EWURA).<\/p>\n

They were demanding apparent reasons as to why measures announced by the Minister for Finance and Economic Affairs, Mr Mustafa Mkulo, in the National Assembly last month on fuel pricing do not correspond with the reality on the ground.<\/p>\n

It seemed as if the fuel regulator was doing nothing to control the skyrocketing prices of petroleum products, with some citizens becoming impatient with the detailed explanations from EWURA’s officials at the pavilion.<\/p>\n

Diesel prices were supposed to drop by 215\/- per litre while the price of kerosene will surge by 430\/- a litre, with the latter taking effect immediately from July 1st, this year.<\/p>\n

Apart from the efforts made by the regulator to elucidate the significances of the decision, many people left the EWURA pavilion furious, others saying the move did not intend to give relief, but hurt low income earners.<\/p>\n

“Nothing has been done, this is just mere theories which do not reflect real situation on the ground,” said Mr Hashim Kiro, who seemed to be totally confused by the explanations on fuel prices.<\/p>\n

He said instead of easing the cost of living, life has become unbearable burden especially after hiking kerosene prices that pushed up the charcoal prices widely used in most urban centres.<\/p>\n

According to Mr Denis Menri, cutting down fuel levies has little impact on people’s living cost. “Better-off the situations could have remained as it was formerly,” he said.<\/p>\n

He said the decision to hike kerosene prices was intended to fulfil few business people’s request, as a way to curbing fuel adulteration while ignoring majority low income earners.<\/p>\n

Responding to various queries from the people at the DITF, EWURA’s Chief Petroleum Inspector Mr Julius Gashaza said there were lack of awareness on the basic duties and obligations of the regulator.<\/p>\n

He said many visitors incorrectly blamed EWURA for negligence, not acting in lowering fuel prices. The fuel watchdog was not tasked with cutting down prices but regulate prices.<\/p>\n

He said hiking kerosene prices, slashing diesel prices and bulk procurement were all programmed to stabilise the commodity prices in the domestic market with a view of easing the cost of living.<\/p>\n

“Each has specific objectives but they both complement each other. They seek to address crisis related to petroleum products, particularly fuel adulteration and price volatility,” he said.<\/p>\n

The fuel marker for example was introduced six months ago but has boosted the Tanzania Revenue Authority (TRA), which has collected 9.7bn\/- per month from extra litres of diesel, which is also translated to about 116bn\/- per year.<\/p>\n

One of the advantages of bulk procurement would be price stability in the local market, apart from volatility of the country’s currency against the US dollars used to purchase the commodity and fuel prices in the world market.<\/p>\n

After long consultative deliberations, regulations on bulk procurement of petroleum products have already been gazetted, paving way for the system to take off. The government notice (GN) number 164 was issued on June 3, this year.<\/p>\n

With all the initiatives on board, challenges which would remain include uncertainties of the oil prices in the international market and instability of the Tanzania shilling. They contribute significantly to fuel prices instability beyond regulators’ control.<\/p>\n

The other challenge was for EWURA to oversee reviews in prices without having to affect efficiency of various institutions which are stakeholders in the sector.<\/p>\n

Variety of fees and charges by different institutions were undergoing review downwards to reduce further fuel prices.<\/p>\n

These include EWURA, Surface and Marine Transport Regulatory Authority (SUMATRA), Tanzania Ports Authority (TPA), National Bureau of Standards (NBS), TIPER and Weights and Measures Agency (WMA).<\/p>\n

One of the clauses in the ongoing process to review the formula is that which allows business people to have the range of 7.5 per cent between the index and cap prices.<\/p>\n

The tax review would bring 4.86 per cent reduction in diesel prices with the index price being 1,939\/- per litre and 21.8 per cent increase in kerosene prices with the index price at 1,940\/- and cap price at 2,086\/- per litre.<\/p>\n

Mr Gashaza appealed for patience as the fuel prices would stabilize between five to six months after all the initiatives were on card.<\/p>\n

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\nEWURA Still Grappling With Prices of Petroleum Products<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tanzania Daily News (Dar\u00a0es\u00a0Salaam) Sebastian Mrindoko 18 July 2011 FUEL pricing was the most asked question by visitors at the just ended 35th Dar es Salaam International Trade Fair (DITF), expressing their distrust to the Energy and Water Utilities Regulatory Authority (EWURA). They were demanding apparent reasons as to why measures announced by the Minister for Finance and Economic Affairs, Mr Mustafa Mkulo, in the National Assembly last month on fuel pricing do not correspond with the reality on the ground. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-464421","post","type-post","status-publish","format-standard"],"yoast_head":"\nEWURA Still Grappling With Prices of Petroleum Products - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/07\/19\/ewura-still-grappling-with-prices-of-petroleum-products\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"EWURA Still Grappling With Prices of Petroleum Products - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Tanzania Daily News (Dar\u00a0es\u00a0Salaam) Sebastian Mrindoko 18 July 2011 FUEL pricing was the most asked question by visitors at the just ended 35th Dar es Salaam International Trade Fair (DITF), expressing their distrust to the Energy and Water Utilities Regulatory Authority (EWURA). 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