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imageDAR ES SALAAM: Tanzania's energy regulator raised the price of petrol in east Africa's second-biggest economy on Wednesday but cut diesel and kerosene prices, citing a weaker local currency and swings in international energy prices.

The Energy and Water Utilities Regulatory Authority (EWURA) raised the retail price of petrol 1.95 percent and lowered the price of diesel 3.5 percent. Kerosene prices were cut 0.9 percent in the latest price caps, which take immediate effect.

Fuel prices are the second-biggest driver of inflation.

"These changes have been caused by a change of prices of petroleum products in the world market and the depreciation of the Tanzanian shilling against the American dollar," EWURA said in a statement.

EWURA raised the price of petrol in the commercial capital Dar es Salaam by 42 shillings to 2,187 shillings per litre while lowering that of diesel in the capital by 74 shillings to 2,040 shillings per litre.

Kerosene prices in the commercial capital fell by 18 shillings to 2,051 shillings per litre.