TANZANIA has the
lowest pump fuel price levels giving motorists a better flexibility on spending
compared to their peers in the six-member East African Community.
The country
petrol price stood at 0.91 US dollars (some 2,002/-) and diesel 0.84 US dollars
(1,848/-), according to Global Petrol Prices website. Mzumbe University’s Dar
es Salaam Campus Economist, Prof Honest Ngowi, said naturally landlocked
countries would have high fuel prices than non-landlocked.
“Naturally
Tanzania will have a lower prices…fuel price is a factor of many components
including taxes and costs of transport”. Uganda is the second with lowest
petrol at 0.97 US dollars and diesel 0.83 US dollars.
Uganda had the
lowest diesel prices in the region up to last Saturday. Kenya, a non-landlocked
country, with the highest purchasing power parity in the region, petrol price
is at 0.99 US dollars (2,178/-) and diesel 0.88 US dollars (1,936/-).
Rwanda was the
second country in the EAC with highest fuel level at 1.02 US dollars (2,244/-)
for both petrol and diesel. The highest country in the bloc with high rate is
Burundi at 1.23 US dollars (2,706/-) where petrol and diesel has the same
price.
Tanzania
despite of having lowest fuel price in region also was the second highest
country with GDP per capita purchasing power parity (PPP) after Kenya. But Prof
Ngowi said PPP does not have a direct correlation with price of fuel other than
making affordability easier for motorists on buying the product.
“Actually to
me I don’t see the direct correlation between the two, than those with high PPP
could be in a better position of affordability…” Prof Ngowi said.
The data shows
that Kenya PPP is the highest in the region GDP per capita PPP at 3088 US
dollars followed by Tanzania 2,672 US dollars, Uganda 1,850 US dollars, Rwanda
1762 US dollars and Burundi 727 US dollars, according to World Bank.
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