A favourable shift in foreign exchange rates has enabled a slight decline in fuel prices for January 2025 compared to December 2024.

Dr. James Mwainyekule, the Energy and Water Utilities Regulatory Authority (EWURA) director general, made this observation in a statement yesterday, outlining countrywide cap prices for this month, showing a drop in fuel prices.

Setting out prices for produce sourced at different ports, the agency said the price for petrol sourced from the Dar es Salaam port decreased from 2,898/- per litre in December to 2,793/- per litre. 

Similarly, ex-Tanga port petrol prices slid from 2,905/- per litre in December to 2,800/- per litre, and at Mtwara port, petrol offloaded from there declined from 2,908/- per litre in December to 2,866/- this month, it stated.

Diesel prices also saw a decrease, as at Dar es Salaam port the price dipped from 2,779/- per litre in December to 2,644/- in January. 

Ex-Tanga port diesel price slid from 2,792/- in December to 2,656/- in January, while ex-Mtwara port diesel prices dropped slightly from 2,851/- per litre in December to 2,716/- in January.

The downward trend in fuel prices are linked to changes in foreign exchange rates and import costs, the statement affirmed, underlining that the cost of fuel (free on board) and premiums are paid using foreign currencies, including the US dollar. 

In the days to the start of January 2025, the average exchange rate had decreased by 11.27 percent, the director intoned.

While fuel import costs have risen slightly with some import sources, these increases were offset by declining foreign exchange rates, he said.

Import premiums for petrol increased by 5.45 percent, diesel by 13.01 percent, and kerosene by 8.82 percent for fuel sourced at the Dar es Salaam port. 

However, ex-Tanga port and ex-Mtwara port premiums for petrol decreased by 6.67 percent, while diesel premiums dropped by as much as 10.33 percent.

“These price changes reflect a combination of global market trends and local adjustments in the fuel supply chain,” the statement added.