Fuel Prices in Tanzania have gone up, prompting a sharp rise in retail and wholesale prices of all petroleum products.
The increase is mainly attributed to changes in prices in the world market, according to a public notice published by the Energy and Water Utilities Regulatory Authority.
Fuel prices have a big influence on the inflation rate in the East African country.
In the 12 months through November inflation eased to 4.4 percent, from 5.1 percent the previous month, but the fuel price hikes could push the inflation rate up again.
The regulator has raised the maximum retail price of petrol by 0.35 percent and increased the cap for diesel by 1.71 percent.
The hike in fuel prices has had a direct effect on transport costs, with Tanzanians now forced to pay more to use public transport vehicles.
Bus drivers say they have had to increase the fares to cussion the business from making loses.
“It depends with the price of the fuel as well as the car owners demand on what should be delivered to them. When you have a smaller car, you get only 22 passengers and the route isn’t long and the Boss wants like Tsh. 100,000 (US$ 45) a day. We just work because we need to put a little something in our stomach” Saleh Abdalah, a bus driver said.
