Tanzania fuel regulator lowers pump prices


The Energy and Water Regulator Authority (EWURA) last week announced new indicative prices for fuel meaning decrease of petrol and slight increase of diesel and kerosene compared to the price applicable in March 2016.

According to EWURA public statement signed by EWURA Director General Felix Ngamlagosi, the retail prices for petrol has dropped by Tsh.83 per litre ($0.037) equivalent to 4.57% while diesel and kerosene have increased by Tsh.30 per litre ($0.014) equivalent to 2.02%, and Tsh.36 per litre ($0.016) equivalent to 2.45%, respectively.

Ngamlagosi said that compared to the March 2016 publications, wholesale prices for petrol, has decreased by Tsh.82.82 per litre ($0.038) equivalent to 4.86% whereas an increase for diesel and kerosene by Tsh26.96 per litre ($0.012) equivalent to 2.17% and Tsh.35.93 per litre($0.016) equivalent to 2.65%, respectively. The price changes were applicable from April 06 2016.

He explained that, to a large extent, these changes have been caused by changes of prices of petroleum products in the world market.

“This information intends to enable stakeholders to make informed decisions for non-petroleum prices at any particular time,” Ngalamgosi said.

He told oil marketing companies that they were free to sell their products at a competitive price as long as the prices follow the authority’s price caps as indicated in the formula which was computed by the approved formula gazetted through Government Notice No. 405/2015 of July 2015.

He further said EWURA will continue to encourage competition in the sector by making available petroleum products pricing information including price caps.

Ngamlagosi suggested that all filling stations or fuel retailers to issue receipts in respect to all the sales that they make.

He also advised customers to demand and keep receipts that clearly show the name of a petrol station, date on which such purchase was made as well as the type of fuel and price per litre for every purchase they make.

“This can be used as an exhibit in case of a complaint lodged in the event that the selling price is above the cap price or in case the products sold are off the approved specifications,” Ngamlagosi said.

He reminded all petrol stations operators to publish petroleum products prices on easily visible boards which should clearly show prices charged, discounts offered as well as any trade incentives or promotions on offer.

The statement recommended that cap prices can be accessed through mobile phones by dialing *152*00# and follow the instructions. This service is free of charge and available in all mobile phone service providers in the country.

Meanwhile, according to World Oil Aminex PLC, the Africa-focused oil and gas production and development company, has announced first gas production from its Kiliwani North gas field in Tanzania.

The Kiliwani North Development Licence is operated by a wholly-owned subsidiary of the company with a 55.575% working interest (expected to reduce to 51.75% as a result of a partial disposal announced on April 4, 2016) and the field will provide the company with its first significant African production revenues.

Initial production commenced from the Kiliwani North-1 well on 4 April 4, KN-1 is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market.

Production is expected to build up to an anticipated production rate of 25-30 MMcfd (approximately 4-5,000 boed gross) over the next 90-100 days. All gas produced during the build-up to full production rates will be paid for under the terms of a recently signed Gas Sales Agreement signed with the sole buyer, Tanzania Petroleum Development Corporation (TPDC). Aminex will receive $3/MMbtu (approximately $3.07 per Mcf) with expected net cash revenues of US$10-15 million per annum.

Aminex will receive all revenue in US dollars and the contractual gas price of US$3/MMbtu will be adjusted annually by applying an agreed United States Consumer Price Index.

The gas price is not linked to any commodity price so importantly is unaffected by current commodity market conditions. The gas delivery point is to be at the outlet flange of the Kiliwani North wellhead and, by selling the gas at the wellhead, the joint venture partners will not be liable for pipeline transportation and processing fees.

East African Business Week.

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