Bitumen price in Tanzania
Bitumen price in Tanzania is dependent on many factors. In the following, we discuss all thoroughly. Tanzania is a country in East Africa within the African Great Lakes region. Its largest city is Dar es Salaam, the city after which the main country’s port is also named. Tanzania is famous for its agricultural activities. In 2013, 24.5 percent of gross domestic product, provided 85% of the country’s exports. Tanzania’s economy dominantly relies on farming; however, the climatic changes can trouble the production volume.
Let’s get to know more about Tanzania
According to the reports, Tanzania is one of the world’s biggest producer of sweet potatoes (1.88 million tons), beans (1.64 million tons), bananas (1.31 million tons), rice (1.31 million tons), and millet (1.04 million tons). The country is also capable of producing and exporting sugar (296,679 tons), followed by cotton (241,198 tons), cashew nuts (126,000 tons), tobacco (86,877 tons), coffee (48,000 tons), sisal (37,368 tons), and tea (32,422 tons). Being notably productive, Tanzania has some companies that both import and export bitumen grades such as penetrations, cutbacks, emulsions, and performances. Therefore, the bitumen price in Tanzania is highly important.
One out of every three citizens is self-employed, showing a high level of small businesses. In addition, only 20 percent of the population has access to a formal bank within an hour’s walking distance of their residence. To be more specific about Tanzania’s society, about 30 percent of people live in urban areas and seven percent in urban agglomerations of more than one million people. Besides, life expectancy in this country is approximately 62 years, due to a report in 2013.
Only 4 percent of people in rural areas have a bank account and, while 70 percent of Tanzanians live on a low income from growing and selling crops, only 1 percent has ever used a loan to buy seeds, implements, or fertilizer. The Agricultural Finance program has empowered some of Tanzania’s most marginalized rural communities and has launched in the South Corridor, a region that accounts for the majority of the country’s agricultural enterprises.
Tanzania’s petrochemical products
Tanzania’s total primary energy supply in 2018 drops in groups as follows:
85.43% from biofuels and waste;
10.52% from primary and secondary oil;
2.63% from natural gas;
0.77% from hydro;
0.64% from coal;
0.01% from geothermal/solar; and
0% from nuclear.
Around 78% of citizens rely on traditional biomass as their main energy source and 84% of the country’s urban population utilizes wood as a fuel. Nearly 95% of Tanzanian wood products (from natural forests) are for energy purposes. Besides, 90% to 100% of total household energy in minor households in developing countries is for cooking and heating. Tanzanian energy utility is dominated by biomass-based fuels, especially wood fuel (firewood and charcoal) which accounts for 90% of the chief energy supply.
Petroleum energy accounts for 8%, electricity for 1.2%, and solar and wind for 1% of energy consumption in Tanzania. Energy imports in 2014 made up 10.73% of energy usage. The access-to-electricity rate more than grew between 2011 and 2016; before this period only 15% of Tanzanians had access to electricity. This development was due to the expansion of the national grid and off-grid solar power solutions for agricultural areas. That is to say, the electrification of rural parts is still a challenge.
More about oil & bitumen
Oil is one of the most important products in the world. When transformed into petroleum, it is a fundamental energy source for vehicles, planes, constructions, coatings, and electricity. To put it differently, petroleum is an essential substance even in plastics, paints, chemicals, tape, and other industries.
The oil industry has three different parts which are: upstream, midstream, and downstream. Upstream consists of the exploration and drilling to discover oil and extract it from the earth. Midstream activities include transportation and storage, while downstream deals with the refining and marketing of the final product. According to the functions of each part, the most important section is the first one, because, without the exploration of oil, all the rest will not progress.
The largest global manufacturers of oil are the United States, Russia, and Saudi Arabia. These three countries produce approximately 33 million barrels of oil per day every year. That is around 54% of total world production. However, other countries such as Iran, Kenya, Tanzania, Somalia, Iraq are the producers but on a smaller scale compared to the three top producers.
What Causes oil and bitumen price in Tanzania to Fluctuate?
- OPEC Effects on the Prices.
- Supply and Demand volume.
- Natural Catastrophes, Political events.
- Production Expenses.
- Interest Rate Impact.
There are some other factors that are determinative on the bitumen price in Tanzania and other countries, but we only brought those which are more effective. As a matter of fact, the global demands for the petrochemical products play the main rule in prices.
What are the effects of low oil and bitumen price in Tanzania?
De-escalating oil prices will lead to a government budget deficiency and will need either higher taxes or government spending cuts. Other oil exporter countries like Venezuela, Kenya, and Somalia have relied on past oil profits to finance large social spending. A fall in oil prices could lead to a significant budget deficit and social problems. That’s why good action and a comprehensive decision is essential for the government to regulate the economy.