Fuel Prices Expected to Reduce in April
By Mary Kachepa
Energy Minister MAKOZO CHIKOTE says the pump price of fuel will begin to reduce by April this year.
Mr. CHIKOTE says the price of fuel will begin to go down because of the open access which has encouraged competition among oil marketing companies.
He says Government has now fully developed the TAZAMA pipeline open access framework, and the first cargoes under this system will arrive in April, 2025.
Mr CHIKOTE says following a prequalification process, 18 Oil Marketing Companies have been cleared to participate in the new, transparent system, of which two have already been cleared.
He says despite other factors that influence the cost of fuel, such as the exchange rate being high, Oil Marketing Companies have decided to reduce on their profits which will in turn lead to price reduction.
Mr. CHIKOTE was speaking in the National Assembly in response to questions from various Members of Parliament who sought clarifications on the alleged decision by Agro fuel investments limited to fill up the reserve tanks at Tazama pipeline thereby blocking the storage of cheaper fuel by other stakeholders.
Mr. CHIKOTE, however, said he is not able to state how much the reduction will be because pump prices are regulated by the Energy Regulations Board.
And, Mr CHIKOTE said he has noted with concern some media reports suggesting that storage space at TAZAMA in Dar-es-salaam has been filled up to block other players with cheaper fuel.
