Tanzania raises petrol, diesel prices, cuts kerosene

May 6, 2015 10:30 AM

DAR ES SALAAM (Reuters) - Tanzania's energy regulator raised the maximum retail prices of petrol and diesel on Wednesday but cut the price of kerosene, citing swings in international energy prices and a weakening local currency.

A Tanzanian engineer walks at the Songas gas processing plant in Songo Songo Island, 225 km south of the Tanzanian capital Dar es Salaam and 25 km off the coast of Tanzania, in a file photo. REUTERS/Emmanuel Kwitema

Fuel prices have a big effect on inflation and the local currency in Tanzania, which relies on oil imports for transport and power generation.

The Energy and Water Utilities Regulatory Authority (EWURA) raised the retail price of petrol 6.32 percent and diesel by 1.37 percent.

Kerosene prices were cut 1.86 percent in the latest monthly price caps, which take immediate effect.

"These changes have been caused by changes of prices of petroleum products in the world market and the depreciation of the Tanzanian shilling against the U.S. dollar," EWURA said in a statement.

EWURA raised the price of petrol in the commercial capital Dar es Salaam by 111 shillings to 1,866 shillings ($0.9439) per litre and that of diesel by 23 shillings to 1,695 shillings per litre.

Kerosene prices in the commercial capital fell 31 shillings to 1,624 shillings per litre.

The Tanzanian shilling has fallen through a string of record lows against the dollar in recent weeks.

($1 = 1,977.0000 Tanzanian shillings)