Dar es Salaam - The Bank of Tanzania (BoT) has reaffirmed its commitment to ensuring oil marketing companies and other stakeholders have consistent access to US dollars, vital for importing petroleum products. The BoT will sustain its supply of dollars into the Inter-Bank Foreign Exchange Market (IFEM), according to BoT Governor, Mr. Emmanuel Tutuba.
Mr. Tutuba advised these entities to obtain foreign currencies through bureau de change, commercial banks, and other markets. The central bank's steadfast stance comes in response to the latest cap prices for petroleum products, revealing a significant hike in prices. The Energy and Water Utilities Regulatory Authority (EWURA) attributed these price fluctuations to dollar availability, changes in fuel levy, global petroleum prices, and premiums on petroleum imports.
"To address the high demand for foreign currency, we have sold six million US dollars in the IFEM recently. The majority of this large sum was directed to oil marketing companies," stated Mr. Tutuba.
He elaborated on the current global dollar shortage as a temporary challenge affecting numerous nations, primarily due to global shocks like the Ukraine-Russia conflict, the COVID-19 pandemic, and climate change. The central bank has initiated several measures to counteract this shortage, including the establishment of an export credit guarantee scheme. This system ensures the quality of products for international competition, contributing to the increase in dollar availability.
Furthermore, the BoT plans to purchase domestic gold and sell it abroad to earn additional dollars. "Strict management of our foreign exchange reserves is crucial in meeting the objectives of the financial markets," Mr. Tutuba emphasized.
Indicative prices announced by EWURA highlighted a price surge in petroleum products across Dar es Salaam, Tanga, and Mtwara. For instance, petrol prices in Dar es Salaam rose from 2,736/- in July to 3,199/- in August, while diesel prices increased from 2,544/- to 2,935/-.
EWURA's Director General, Dr. James Mwainyekule, underscored that all retailers and wholesalers must sell petroleum products at the stipulated prices. Non-compliance will result in legal action. EWURA has also mandated all petrol stations to visibly display prices. Failure to comply will attract punitive measures, he warned.
"The public, wholesalers, and retailers must adhere to these regulations. Any deviation will not be tolerated," Dr. Mwainyekule insisted.