Consumers’ concerns as energy crisis drives up transport costs, food prices

Concerns are growing over the rising cost of living as businesses struggle to absorb mounting operational expenses. The situation is tightening margins and reshaping pricing decisions across several sectors.

Traders at Kariakoo, the country’s largest commercial hub, say a combination of rising fuel prices, high shipping charges, and delays in global supply chains is placing pressure on both businesses and consumers.

The strain is becoming increasingly visible in retail prices and transport charges. The latest pressure follows recent increases in fuel prices announced in Tanzania Mainland.

The Zanzibar Utilities Regulatory Authority (ZURA) also announced revised fuel prices yesterday, citing rising global oil prices and freight costs as key drivers.

According to the Energy and Water Utilities Regulatory Authority (EWURA), the prices, which took effect on Wednesday, May 6, 2026, show increases in petrol, diesel and kerosene.

The increases are largely attributed to global supply disruptions linked to geopolitical tensions in the Middle East, which have affected crude oil pricing and shipping routes.

Despite government intervention through a subsidy of Sh259 per litre on diesel, pump prices have still risen. In Dar es Salaam, petrol increased by Sh295 to reach Sh4,115 per litre, up from Sh3,820 recorded in April.

Diesel rose by Sh442 to Sh4,248 per litre, while kerosene recorded the steepest increase, rising by Sh993 to Sh4,677 per litre.

In Zanzibar, petrol increased from Sh3,500 to Sh3,820 per litre, while diesel rose from Sh3,500 to Sh3,850. Kerosene prices also climbed to Sh3,800 per litre. The adjustments reflect similar global pressures affecting fuel import costs and distribution.

“The increase in the prices of petrol, diesel and kerosene has been caused by higher fuel purchase prices on the world market and increased importation costs to Zanzibar,” ZURA said in a statement.

The rise in fuel prices has also triggered higher marine transport charges. Shipping and ferry operators say operational costs have become increasingly difficult to manage without adjusting fares.

The Zanzibar Maritime Authority (ZMA) confirmed that ferry fares between Zanzibar and Dar es Salaam will increase from Friday due to higher fuel costs. Ordinary passenger fares have risen from Sh35,000 to Sh40,000, while VIP tickets have increased from Sh70,000 to Sh80,000.

Speaking to *Mwananchi*, ZMA information officer Suleiman Salim confirmed the adjustments. He said the changes were unavoidable under current cost pressures.

“It is true that fares have increased, and the authority recognises the changes. The new prices are expected to start being applied tomorrow (today),” he said.

A ticketing officer at Zan Fast Ferries said the company was still charging Sh35,000 for ordinary passengers and Sh60,000 for VIP travellers at the time of reporting. However, an official announcement on revised fares was expected shortly.

The increase in transport charges has sparked concern among passengers and traders who rely on regular movement between Zanzibar and the mainland for business activities.

Many say the changes will disrupt established trading patterns.

A Zanzibar resident, Ms Hinaya Mansour Mahmoud, said ferry fares have been rising almost every year despite difficult economic conditions facing ordinary citizens.

“Two years ago the fare was Sh30,000 from Zanzibar to Dar es Salaam, and now it has increased again to Sh40,000. Very few people will be able to afford these costs,” she said.

Another resident, Mr Kombo Himidi, said the increase would affect traders who depend on frequent travel between Zanzibar and the mainland to sustain their businesses. He called for greater government clarity on recurring fare adjustments.

Traders decry rising costs

At Kariakoo in Dar es Salaam, traders say higher transport costs have already pushed up prices of foodstuffs, construction materials and imported goods.

The Secretary General of the Kariakoo Traders Association, Mr Abdallah Salim, said transport costs have risen significantly in recent months, increasing the overall cost of doing business.

“Products have become more expensive because transportation costs have gone up. Traders are paying more to move goods from production areas to the markets,” he said.

He added that businesses are also facing shortages of imported goods due to rising global shipping costs and persistent disruptions in international supply chains.

“One of the biggest challenges is the shortage of imported goods. Even when goods arrive, the costs are extremely high, and this eventually affects consumers,” he said.

Mr Salim noted that the situation is particularly affecting traders dealing in electronics, spare parts, textiles and household goods imported from Asia and the Middle East. These categories are highly sensitive to freight fluctuations.

He explained that delayed cargo deliveries and increased freight charges have forced some traders to reduce orders or raise retail prices to manage expenses. In some cases, import cycles have become longer and less predictable.

The retired Secretary General of the association, Mr Abdallah Mwinyi, said fuel price increases have a direct and immediate impact on transport costs and inflation.

“When fuel prices rise, the cost of goods and business activities also increases,” he said. Mr Mwinyi noted that transporters moving food commodities from producing regions to Dar es Salaam have significantly raised their charges.

“If I order rice from Mbeya to Dar es Salaam, I used to pay around Sh20,000 per sack for transport, but now it can cost more than Sh50,000 for the same load,” he said.

He added that transport operators frequently adjust charges in response to fuel price movements, creating uncertainty for traders and consumers.

The situation has left traders struggling to balance operating costs with customer purchasing power. Many say they are caught between rising expenses and weak demand.

Kariakoo traders’ chairman Severine Mushi said many traders cannot fully transfer increased costs to consumers due to reduced sales volumes.

“We would like to raise prices to match the costs we are facing, but customers are unable to cope with the higher prices,” he added. According to him, some traders are now reducing stock levels and limiting imports due to uncertainty surrounding transport costs and consumer demand.

The impact of higher fuel prices is also spreading to regional markets across the country. Traders in Mwanza warn that food prices are likely to rise further as transporters revise charges.

Chairman of Mwanza Main Market, Ahmed Nchola, said the cost of transporting commodities from major agricultural regions has risen sharply.

“From Manyara to Mwanza it used to cost Sh15,000 to transport one sack, but now it is Sh20,000,” he said.

He said consumers may begin feeling the effects immediately as traders restock under new transport charges. Price adjustments are therefore expected to follow.

According to him, rice is currently retailing between Sh2,800 and Sh3,000 per kilogram, but prices are likely to increase further in the coming weeks.

A grain trader in Buhongwa, Mr Shedrack Mzee, said he recently paid Sh23,000 to transport goods from Liberty to Buhongwa, compared to Sh15,000 previously. “I was shocked. I asked around from about two transporters; one quoted Sh25,000 and another even higher, so I ended up returning to the first transporter who quoted Sh23,000,” he said.

Mr Mzee said increased transport charges had forced him to raise flour prices from Sh1,000 to Sh1,200 per kilogram. Tomato trader Ms Anitha Samwel said she had also adjusted prices after transport and wholesale costs surged.

“I used to sell one bundle of tomatoes at Sh300, but now I sell at Sh500 because the costs have gone up,” she said.

She added that traders are currently buying baskets of tomatoes at prices starting from Sh35,000, compared to about Sh20,000 previously.

In Mbeya, traders said prices of rice, beans and other grains have remained relatively stable for now due to improved harvests and earlier stockpiling.

However, they warned that stability may be temporary. At Soweto Market, traders recalled that food prices surged about two months ago when earlier fuel increases affected transport charges.

One trader, Mr Victor Uhuru, said current stability is largely due to the harvest season that began earlier this month.

(Additional reporting by Saada Amir in Mwanza, Sadam Sadiki in Mbeya and Zuleikha Fatawi in Zanzibar.)

“The recent increase in fuel prices found many traders having already transported and stored their goods,” he said.

Another trader, Ms Elizabeth Charles, said prices could rise again since many goods are sourced from outside the region.

At Ferry Market in Mbeya, secretary Mr Job Peter said traders had expected rice prices to fall after harvests, but transport costs were preventing any significant decline.

“Rice was expected to drop to between Sh3,400 and Sh4,000 per kilogram after the harvest season, but prices have remained high,” he said.

He added that vegetables remain relatively affordable due to favourable weather, while beans range between Sh28,000 and Sh34,000 depending on variety. Transport costs, however, continue to exert pressure.

Meanwhile, chairman of the Dar es Salaam Regional Markets Association (RUMADA), Mr Mohamed Mwekya, said traders nationwide are already dealing with higher logistics costs linked to fuel increases.

“Transport costs have gone up because fuel prices increased. Expenses that used to be around Sh10 million have now risen to Sh11 million, and that increase eventually affects retail prices,” he said.

Call for intervention

Some residents are calling for government intervention to stabilise fuel prices and ease pressure on transport operators and consumers.

A resident of Darajani in Zanzibar, Mr Mohammed Salah, said authorities should strengthen strategic fuel storage systems to reduce reliance on daily imports.

“The government should establish stronger systems for storing fuel instead of depending entirely on imported supplies every day,” he said.

Another resident, Ms Salma Hamid, urged a review of fuel taxes to cushion consumers from rising costs.

“The government should reduce fuel taxes. We were told previously that fuel supplies were sufficient, so it is surprising to see prices increasing again within a short period,” she said.

Additional reporting by Saada Amir in Mwanza, Sadam Sadiki in Mbeya and Zuleikha Fatawi in Zanzibar.