The good news comes hardly a week since the regulator announced a drop in prices for fuel. According to an EWURA update on Liquid Petroleum Gas (LPG) price trends in the local market, the 15 kilogramme-cylinder now sells at 40,000/-, from 44,500/- in December 2015, while in December 2014, the same cylinder was going cheaper at 54,000/-, having spiralled down from 56,000/- in January of the same year.
The 3-kilogramme cylinder refilling price is now 7,000/- -- from 9,000/- in December 2015, while the same cylinder was sold for 11,500/- in December 2014; from 12,000/- in January of the same year.
The 38kg cylinder is now sold at 80,000/-; down from 90,000/- in December 2015, while the same cylinder fetched 115,000/- in December 2014 -- down from 125,000/- in January of the same year, while the 6kg cylinder is now available at 17,000/- from 18,000/- and 20,500/- in December and November 2015 respectively.
EWURA Communications and Public Relations Manager Titus Kaguo told the ‘Daily News’ that the LPG sector was one of the most disciplined in the country when it comes to pricing.
“Whenever there is a drop in prices in the world market, local gas distributors will always reduce their prices. This is also because there are so many players in the market.
The lower the price the more customers one will have,” Mr Kaguo explained. He hinted that EWURA was directly dealing with distributors, not retailers, which has also been instrumental in maintaining the price discipline and high quality of cylinders.
Mr Kaguo said EWURA had issued some directives to distributors, including sealing of all refilled cylinders, and provision of measures to identify if weight measurement corresponds to the one on the cylinder.
An official of Oryx Gas Tanzania Ltd, who preferred anonymity because he is not the company’s spokesperson, confirmed that the prices in the local market have gone down. He said the 15kg cylinder is now obtained at 44,500/- -- from 52,000/; a 6kg cylinder one now at 18,000/- while the 3kg is now sold at 9,000/-.
“We are the pioneers in the gas industry and our policy has been to encourage more people to use cooking gas. However, the challenge has always been on high prices.
So whenever there is an opportunity to reduce the retail price, Oryx Gas would surely seize it to enable more people switch from charcoal to gas,” he explained.
Oryx, importing more than 3,000 tonnes a month, is one the largest cooking gas distributors in the country. Other players in the market include Camel Oil Company, which produces Cam Gas and Mihan Gas, and Lake Oil.
Daily News