GOVERNMENT DISHES OUT TSHS 100 BILLION IN FUEL SUBSIDY

Energy Minister, January Makamba presents the government's report on the oil situation in the country to the National Assembly in Dodoma yesterday to announce a sum of 100 billion Shillings in grants to cushion against the rising prices of petroleum products in the country for the remaining period of the financial year 2021/2022. 

• Outlines long-term measures, MPs congratulate President Samia

The government has dished out a total of 100bn/- as an emergency measure to subsidise and cushion the skyrocketing fuel prices with effect from next month.

Announcing the measure in the National Assembly on Tuesday, Minister for Energy, January Makamba said President Samia Suluhu Hassan having convened a meeting with Ministers directed for instituting the measure to bring relief to Tanzanians.

Elaborating, the Minister noted that the funds released in fuel relief package will not affect development projects.

He said the Head of State ordered tightening of government expenditure for the remaining days of the ending financial year (2021/2022) before the kick-off of the new financial year, so that the money saved could help Tanzanians in securing the relief.

The Minister said the relief in fuel prices will be felt from 1st June, 2022 because oil dealers had already incurred import costs for the fuel stock that is currently in the market.

“The prices issued by the Energy and Water Utilities Regulatory Authority (EWURA) in May (May Cap Prices) included importation costs that oil dealers already incurred,” explained the Minister.

According to the Minister, government is in the final stages of acquiring loans from the World Bank (WB) and International Monetary Fund (IMF) that will be used in the next financial year to subsidise fuel and other commodities that directly touch people’s lives.

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