Dar es salaam - Tanzania lowered the cap on the prices of petrol, diesel and kerosene on Wednesday, citing a stronger local currency and lower world market prices for a move seen easing inflationary pressures.
With immediate effect, petrol prices fall 5.96% to 1 993 shillings ($1.26) in the commercial capital Dar es Salaam, while diesel dips 1.6% to 1 967 shillings, the Energy and Water Utilities Regulatory Authority (EWURA) said.
The cost of Kerosene declines 2.5% to 1 973 shillings a litre.
"These changes of petroleum products prices have been attributed to a decrease of prices in the world market and a slight appreciation of Tanzanian shilling," EWURA said in a statement.
Tanzania's year-on-year inflation rate fell for the eleventh straight month in November to 12.1% from 12.9% in October, due largely to a slower rise in food prices. Food and energy prices are the main drivers of consumer prices in Tanzania.
EWURA said it had also lowered wholesale prices of petrol by 6.17% and for diesel by 1.69%, while kerosene prices were cut by 2.6% ($1 = 1585.0000 Tanzanian shillings).
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.