Revealed: Winners and losers as oil marketers battle for market share

Puma Energy remained the market leader with a 15.5 percent share, followed by Camel Oil which market share more than doubled from 5.54 percent in 2023/24 to 11.4 percent in 2024/25, emerging as the biggest climber. Mansoor Industries Limited (MOIL) followed the trail with 10 percent market share, while Oilcom Tanzania stood at 6.4 percent and Mount Meru Petroleum at 5.3 percent.

“Puma Energy has maintained the first position over a period of four years, while Camel Oil has moved from the eighth position with a market share of 5.54 percent in FY 2023/24 to second with a market share of 11.4 percent,” the report says.

MOIL, which had been the second-largest player, fell to third after its market share declined from 11.12 percent in 2023/24 to 10 percent in 2024/25.

Acer Petroleum also recorded a sharp decline, with its market share falling from 7.96 percent to 4.8 percent, pushing it from fourth to eighth position.

Oryx Oil recorded another significant decline, with its market share dropping from 5.99 percent to 2.8 percent. The company fell from sixth to 11th position.

Mount Meru Petroleum, meanwhile, increased its market share to 5.3 percent, securing fifth position.

What drives market share?

Ewura said market share is influenced by several factors, rather than simply the number of companies operating in the sector.

These include the number of retail outlets owned by an OMC, consumer loyalty to particular brands and the quality of services offered to independently owned retail outlets.

Supply agreements with large consumers also play a significant role.

The report identifies industries, mining operations and agricultural enterprises among major consumers whose supply contracts can influence the market position of individual OMCs.

Room for competition

Ewura said companies can enter or exit the market, merge, acquire other businesses, rebrand or conduct promotions, provided they comply with existing legal requirements.

The arrangement is intended to promote competition while ensuring that market activities remain within the law.

However, the regulator said companies are prohibited from engaging in practices that undermine fair competition, compromise consumer safety or violate petroleum regulations.

These include distorting fuel quality standards, selling petroleum products above regulated cap prices and breaching health, safety and environment (HSE) requirements.

“Anticompetitive practices, including the distortion of fuel quality standards, the sale of petroleum products beyond cap prices, and breaching HSE practices, are restricted, and legal actions are taken against dishonest operators,” the report says.

The regulator monitors oil marketing companies (OMC) performance to assess the level of competition in the petroleum industry and ensure compliance with legal and regulatory requirements.

Commenting on the findings, Ewura Director of Petroleum Gerald Maganga said the figures showed that the sector remained competitive, with a number of players operating in the market.

“This simply shows that the petroleum sector is vibrant and has a number of players,” he said.

Mr Maganga said the large number of players meant that the exit of one company would not necessarily result in a fuel shortage, as other companies could continue supplying the market.

He said competition was also important in protecting consumers by ensuring that no single company gained excessive market power.

“Competition is a good thing in business because consumers are protected by market forces. Companies conduct their businesses in accordance with the laws, regulations and procedures governing the sector, allowing them to compete fairly while complying with the law,” he said.

Local firms gain ground

Tanzania Private Sector Federation (TPSF) acting chief executive officer Deogratius Massawe said the growing number of locally owned companies in Tanzania’s petroleum sector was a positive development that could strengthen the country’s economic resilience amid changing patterns of international investment.

Mr Massawe said declining investment by some international companies in Africa, particularly those whose ownership structures face restrictions, presented an opportunity for locally owned firms to expand their participation in strategic sectors.

“If you look at the number of locally owned companies, it has increased. At the same time, investment by international companies in Africa has declined, particularly for companies whose ownership structures face restrictions,” he said.

He cautioned that excessive dependence on international companies could expose the country to disruptions if those firms encountered external challenges, including sanctions.

“If we continue depending on international companies, when there are challenges affecting them, including sanctions, there could also be implications for us. The growth of locally owned companies is therefore a positive development,” he said. Mr Massawe said the growth of local companies should be supported by stronger management and a favourable business environment to enable them to compete effectively and sustain their operations. “With good management and a supportive business environment, companies are increasingly becoming more structured and better positioned to participate in the sector,” he said.

He said the trend should extend beyond the petroleum industry to other areas of the economy, particularly manufacturing and production, arguing that stronger domestic businesses were important for long-term economic sustainability.

Mr Massawe also urged local companies to maintain their momentum by strengthening their operations, improving management and making use of opportunities emerging from changes in the global investment landscape.

He said international investors should complement, rather than replace, the growth of domestic businesses by bringing capital, technology, expertise and new investment opportunities.