DAR ES SALAAM (Reuters) – Tanzania’s energy regulator raised maximum retail prices on fuel on Friday, citing higher international crude oil and refined product prices, a move expected to exert upward pressure on inflation.
Fuel prices have a big effect on the inflation rate in the east African country, which slowed to 5.1 percent year-on-year in April from 5.4 percent the previous month.
The Energy and Water Utilities Regulatory Authority (EWURA) raised the retail price of petrol by 4.49 percent and the price of diesel by 1.95 percent.
Maximum kerosene prices were raised 1.84 percent in the latest monthly price caps, which take immediate effect.
“To a large extent, increases in wholesale and retail local petroleum products prices have been caused by the continued increase of petroleum products prices in the world market,” EWURA said.
The regulator increased the price of petrol in the commercial capital Dar es Salaam by 80 shillings ($0.0366) a litre to 1,865 shillings, and the price of diesel in the capital by 31 shillings to 1,633 shillings.
Kerosene prices in the commercial capital rose 29 shillings to 1,607 shillings per litre.
($1 = 2,187.0000 Tanzanian shillings)
(Reporting by Fumbuka Ng’wanakilala; editing by Elias Biryabarema and Adrian Croft)