Tanzania’s oil import bill rises 18%


By George Mwangi

Special for Dow Jones Newswires

Tanzania’s oil import bill rose 18% to $ 1.73 billion in the 12 months ending in September due to rising world prices, the Bank of Tanzania said Thursday evening.

Oil accounted for a fifth of the merchandise import bill during the period, the bank said.

The price of crude oil on the world market rose 6.5% on the month to $ 74.6 per barrel in September as demand increased due to the recovery in the global economy following the effects of the coronavirus pandemic, the bank said.

In September, domestic pump prices for gasoline, diesel and kerosene registered an annual increase of 30.7%, 25.6% and 26.3%, respectively, the bank said.

However, Tanzania’s energy inflation slowed to 4.6% from 5.1% in June 2021, despite an upward trend in oil prices at the pump, the bank said.

The 12-month inflation rate rose to 4% in September from 3.6% in June, the bank said.

Tanzania’s inflation is expected to remain within the target of 3-5% over the remaining 2021-2022 period, despite a slight increase since June 2021, the bank said.

“The projection is bolstered by an adequate food supply and a stable exchange rate, which should partially mitigate the impact of high oil prices,” the bank said.

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