Energy CS Chirchir explains why Fuel is cheaper in Tanzania as compared to Kenya.
Energy CS Chirchir explains why fuel is cheaper in Tanzania citing that it is because of a “lag effect” during the price computation of oil products in the two countries.
He stated,”The disparity in price computation between Kenya and Tanzania is a result of differences in the pricing methodologies that create a lag effect. The impact of the different pricing methodologies has resulted in a temporary price advantage to Tanzania in a declining market
The CS Further pointed out that Epra computed fuel prices for the November-December cycle on the basis of fuel cargos procured in September but discharged at the Port of Mombasa between October 10 and November 9.
The CS stated,”In the pricing cycle, Epra considered two super petrol cargoes priced September 2023, four diesel cargoes priced September 2023, and two fuel cargoes of JetA1 (kerosene) one priced September 2023 and November 2023,”
“It is intrusive to note that the September 2023 Platts prices were the highest in the last 12 months,” he added.
The debate on Tanzania and Kenya fuel prices came on 7th November, where Director General James Mwainyekule announced the drop in fuel prices in Tanzania.
He explained that this is as a result of a drop in premiums for the importation of petroleum products by an average of 13 per cent for gasoline and 25 per cent for Automotive Gas Oil (AGO).
This means, a litre of petrol went down to Tsh 3,274 (Sh198.42) in Dar es Salaam, Tsh 3, 320 in Tanga (Sh201.21), and Tsh 3,347 in Mtwara (Sh202.84) , Diesel retailed at Tsh3,374 (Sh204.48) in Dar es Salaam in November.
As compared to Kenya; Petrol retails at Sh217.36 per litre in Nairobi, Sh203.47 for diesel while kerosene is going for Sh203.06
In October, petrol price stood at Tsh3,281 (Sh198.90) in Dar es Salaam while diesel was Tsh3,448 (Sh209.02).
As compared to Kenya where; consumers were in October paying Sh217.36 for a litre of petrol, Sh205.47 for diesel and Sh204.46 for kerosene in Nairobi.
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