Tanzania lowered marginally the cap on the prices of petrol, diesel and kerosene on Wednesday, citing a stronger local currency and lower freight costs, the energy regulator said.

The adjustments, which take place with immediate effect, are expected to help ease consumer price pressures in east Africa’s second-biggest economy.

The Energy and Water Utilities Regulatory Authority (EWURA) cut the cap price of petrol in the commercial capital Dar es Salaam by 0.41 percent to 2,179 shillings a litre, while diesel fell by 2.02 percent to 2,041 shillings.

Kerosene was cut by 1.94 percent to 2,028 shillings a litre.

“The prices decreases have been attributed by appreciation of the Tanzanian shilling against the U.S. dollar and a decrease of premium and freight costs,” EWURA said in a statement.

Tanzania’s inflation rate fell marginally in May to 18.2 percent from 18.7 percent a month earlier, thanks to lower increases in the cost of commodities.

Tanzania introduced a new formula for calculating fuel cap prices in December after the adoption of a bulk fuel procurement system aimed at lowering pump prices.

 

 

Source: reuters