Impact of oil price changes on Tanzanian economy a case of Dar es salaam region

dc.contributor.authorMmari, James Wilfred
dc.descriptionAvailable in print form, East Africana Collection, Chagula Library, Class mark Dr. Wilbert (THS EAF HD9560.4T34M552)en_US
dc.description.abstractThe main objective of the study was to assess the impact of oil price changes on Tanzanian economy. The specific objectives were to determine the impact of oil price changes on Tanzanian economy, to identify how the distribution and marketing costs and taxes affect the local Tanzanian oil prices and to identify challenges facing the wholesale and retail distribution of petroleum products in Tanzania. The study was conducted in Dar es Salaam region and data were collected from EWURA, TPDC, Car owners, oil and marketing companies and the citizens. Both interview and questionnaire methods were used in collecting data and the sample size was 70 respondents. The data collected are grouped into seven components from the respondents who are strongly agreed to those who are strongly disagreeing (Likert Scale is used). Also the responses from interviewers who are neither agreeing nor disagree with are also taken into account to these findings. The study findings revealed that high oil prices have harmful effects on the economy of many countries particularly those that are heavily debt-burdened like Tanzania. These countries are dependent on oil importation therefore; high prices of oil can lead into a decrease in output and consumption and to a worsening affect industrial production. It can also increase education costs, health costs, and cost for other commodities such as food and affect investment and tourism activities in the country. Furthermore, study findings revealed that factors leading into the increase in oil price can be categorized into two categories namely internal factors and external factors. Internal factors include taxes imposed on oil products, EWURA charges on oil products together with the means of transporting and distributing oil (road oil tankers). The external factors include international fluctuations of oil demand and supply, political instability in oil producing countries and increasing global demand for oil product. The study also revealed some challenges facing oil trading and distribution to include security in transporting and distributing oil in the country together with the role of EWURA in regulating oil trade. It is therefore recommended that the government should develop new strategies of ensuring that increasing prices of oil does not affect people’s life and the economy in general. Let the government avoid the principle of passing increasing prices to the consumers as it affect them and let the reserves of oil and gas discovered in Tanzania bring blessing to the people by fastening extraction process. The major limitation of the study is based on its coverage. The study was only limited Dar es Salaam region. This was due to lack of time and financial resources. Other studies can be conducted to cover up rural areas to see the consequences of increasing oil prices to the normal life of poor people.en_US
dc.identifier.citationMmari, J.W. (2014) Impact of oil price changes on Tanzanian economy a case of Dar es salaam region, Master dissertation, University of Dar es Salaam, Dar es Salaamen_US
dc.publisherUniversity of Dar es Salaamen_US
dc.subjectPetroleum productsen_US
dc.subjectDar es Salaamen_US
dc.titleImpact of oil price changes on Tanzanian economy a case of Dar es salaam regionen_US