Dar Es Salaam - Tanzania raised its cap on pump prices of petrol and diesel on Tuesday, citing higher import costs and a weakening local currency in a move likely to put renewed upward pressure on inflation.

With immediate effect, petrol prices will rise by 3.4 percent to 2,119 shillings ($1.32) per litre in the commercial capital Dar es Salaam, and diesel by 0.53 percent to 1,999 shillings, the Energy and Water Utilities Regulatory Authority (EWURA) said.

Kerosene prices went down slightly by 0.1 percent to 2,023 shillings per litre.

Tanzania's year-on-year inflation slowed to 12.9 percent in October, its tenth consecutive monthly fall.

“These changes ... have been attributed to the increase of prices in the world market and a slight depreciation of Tanzanian shilling,” EWURA said in a statement emailed to Reuters.

EWURA said it had also raised wholesale prices for petrol by 3.52 percent and for diesel by 3 percent, and lowered kerosene prices by 0.15 percent. - Reuters