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imageDAR ES SALAAM: Tanzania's energy regulator cut fuel prices on Wednesday to reflect lower import costs, in a move likely to further ease inflationary pressures.

Fuel prices are the second-biggest drivers of inflation in the east African nation after food prices. Year-on-year inflation fell for the third consecutive month to 5.8 percent in November from 5.9 percent the previous month.

The state-run Energy and Water Utilities Regulatory Authority (EWURA) cut the price of petrol in the commercial capital Dar es Salaam by 3.6 percent to 1,955 shillings ($1) per litre, and diesel by 3.3 percent to 1,846 shillings.

It lowered the price of kerosene in the commercial capital by 2.9 percent to 1,833 shillings per litre.

EWURA said it had also lowered wholesale prices for petrol by 3.8 percent, diesel by 3.4 percent and kerosene by 3.0 percent.

"The drop in retail and wholesale local prices has been caused by a continued trend of falling world oil market prices," EWURA said in a statement.

The price of Brent crude has fallen by more than 50 percent since June and was trading at $50.85 per barrel on Wednesday.

The new fuel prices will take immediate effect and will stay in place for one month, EWURA said.

A leading opposition figure in Tanzania has raised concern that benefits of the global oil price slide were not being passed on to consumers in the nation of 45 million.

Copyright Reuters, 2014

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