Tanzania Raises Fuel Prices in Dar es Salaam, Introduces Targeted Diesel Subsidy

The government of Tanzania introduced a subsidy of 259/- per litre on diesel as the Energy and Water Utilities Regulatory Authority (EWURA) announced a new price cap effective May 6, 2026. In Dar es Salaam, the retail price of petrol rose to 4,115/- per litre while diesel reached 4,248/- per litre. 7 per cent.

6 per cent. These domestic adjustments follow global market pressures triggered by a conflict involving the United States, Israel and Iran that began in February 2026. The Strait of Hormuz was closed during the fighting.

Approximately 20 per cent of the world's oil supply passes through the Strait of Hormuz. Refined petroleum prices in the Arab Gulf market rose sharply in April 2026 compared to February levels. 2 per cent for kerosene.

7 per cent, yet proved insufficient to offset the surge in global oil prices and logistics costs. EWURA reported price variations across regions. While petrol in Dar es Salaam is priced at 4,115/- per litre, consumers in Katoro, Kagera Region, face the highest price at 4,375/- per litre.

AllAfrica reported that the government introduced the diesel subsidy recognising its critical role in economic and social activities such as industrial production, freight transport and public transport services. Dr Hildebrand Shayo said fuel is a fundamental input across the economy, meaning rising petrol and diesel costs inevitably push up transport expenses and, consequently, the prices of food, manufactured goods and services.

He explained that this dynamic fuels inflation, eroding purchasing power while increasing operational costs for businesses, which may reduce profitability and deter investment.

Dr Hildebrand Shayo recommended targeted subsidies, tax adjustments and long-term investment in alternative energy and transport systems. For its part, Dr Sajad Habib Rai commended the government for its proactive approach. Dr Sajad Habib Rai said the diesel subsidy has helped to reduce the impact of rising fuel prices, particularly in the transportation sector.

“We commend the government for introducing this subsidy. To a considerable extent, it has helped to ease the burden caused by rising fuel prices. Not every country in the world has taken such measures, yet the current fuel supply constraints are a global challenge.”

“— Dr Sajad Habib Rai, MOIL Energies Investment Manager AllAfrica reported that EWURA stated the government continues to implement measures to ensure consistent fuel supply and maintain price stability as far as possible. The regulatory authority noted that the primary driver behind the increase is the conflict that began in February 2026 involving the United States, Israel and Iran, which disrupted key oil production, storage and refining infrastructure. This led to reduced global supply and significant price increases, compounded by the closure of the Strait of Hormuz that caused increased shipping and insurance costs, reduced tanker traffic and logistical delays.”