Tanzania lowered retail fuel prices on Wednesday, following a drop in the price of crude oil in global markets, raising hopes of further declines in the country’s inflation rate.
Food and fuel prices are the main drivers of inflation in East Africa’s second-biggest economy.
Tanzania is currently not an oil-producing nation but has gas deposits in a deep-water basin it shares with Kenya and Mozambique.
Year-on-year inflation fell for the sixth straight month in June to 17.4 per cent from 18.2 per cent previously, helped by lower food and energy costs.
The state-run Energy and Water Utilities Regulatory Authority lowered the price of petrol in the commercial capital, Dar es Salaam, by 7.81 per cent to 2,009 shillings per litre (N204.077); and cut that of diesel by 4.81 per cent to 1,943 shillings (N198.463), Reuters reports.
The price of kerosene was lowered by 5.05 per cent to 1,926 shillings per litre (N196.727).
The new maximum price take immediate effect until the next review next month, the body said. The body said it had also lowered wholesale prices for petrol by 8.09 per cent, diesel by 4.99 per cent and kerosene by 5.24 per cent.