Dar es Salaam motorists are currently paying Sh2,405 per litre of petrol, up from Sh1,520 in June last year, available data shows.
In simpler perspectives, this means that one has to pay Sh885 more to access a litre of petrol in Dar es Salaam in July 2021 compared to what the same person paid for the same volume of the product 12 months ago.
The latest adjustments were effected on July 1, 2021 as the government seeks to collect Sh100 as fuel levy in line with the Sh36.68 trillion-budget for the financial year 2021/22.
But with rising global prices, the increase had to go beyond the Sh100 fuel levy, with the Energy and Water Utilities Regulatory Authority (Ewura) finally raising July 2021 retail prices of petrol, diesel and kerosene by Sh156, Sh142 and Sh164 per litre, respectively for the products imported via the Dar es Salaam Port.
The high fuel costs are largely due to numerous taxes, levies and fees to the government, some of its agencies and departments.
A calculation of how the price of a litre of petrol is arrived at shows that between 30 and 40 percent of it actually goes to the government, its agencies and departments in form of taxes, levies and regulatory fees.
This is precisely why fuel prices is cheaper in some countries that import the product via Tanzania’s ports and elsewhere.