Tanzania: Oil plunge saves $728.2m

11 April 2016,  Dar es Salaam – The Organisation of Oil Producing Countries (Opec) is grappling with falling prices of oil, yet the same is a blessing in disguise to Tanzania, which saved $728.2 million (about Sh1.6 trillion on the prevailing exchange rate) on the commodity alone in one year.

Crude-oil-declineOpec members will have their crucial meeting later this month as they seek to reach an agreement on limiting output as prices keep falling despite minimal improvements registered during the past few days, according to AFP reports.

And data, produced by the Bank of Tanzania (BoT) show that the amount spent on oil imports decreased by 20.7 per cent during the year ending January 2016. Tanzania imported oil worth $3.525 billion during the year ending January 2015 but came it came down to $2.797 billion during the year to January 2016.

“Prices of crude oil and white petroleum products decreased largely on account of prospects for continued abundant supplies and concerns about weak demand,” reads a statement in the BoT latest Monthly Economic Review.

Tanzania is currently estimated to be consuming around three million litres of petrol per day, five million litres of diesel and 300,000 litres of kerosene.

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