Fuel crisis fears grip Parliament as MPs push drastic spending cuts, gold sale

By Katare Mbashiru

Dodoma. A heated debate unfolded in Parliament on Wednesday, April 8, 2026, as lawmakers called for urgent and unconventional measures to shield Tanzania’s economy from mounting fuel shocks linked to the ongoing US-Israel war on Iran.

Singida West Member of Parliament, Mr Elibariki Kingu, urged the government to immediately slash non-essential allowances for public servants, proposing a temporary but sweeping austerity plan to stabilise the economy.

“I hereby request the Prime Minister and his entire government to cut all recurrent public service expenditures for at least four months, from now until July, so that all funds are channelled towards cushioning fuel shocks and keeping our economy strong,” he told the House in Dodoma while contributing to the debate on the Prime Minister’s Office budget estimates.

Mr Kingu emphasised that legislators must go beyond oversight and actively propose solutions to mitigate the crisis.

He revealed that Tanzania had narrowly avoided a major fuel supply disruption after reports emerged that some ships carrying fuel consignments were almost diverted to other destinations before government intervention secured them.

In a forward-looking proposal, the MP also called for strategic investment in fuel storage infrastructure, arguing that Tanzania could turn its geographic advantage into an economic opportunity.

“Why shouldn’t we create a hub where we can even sell fuel to our neighbours, like Zambia and Mozambique?” he queried, noting that enhanced storage capacity would not only guarantee domestic supply but also position the country as a regional fuel distribution centre.

Echoing concerns over rising pump prices, Hai MP Saashisha Mafuwe proposed tapping into the country’s gold reserves to ease the burden on citizens.

“Our President had the vision to build gold reserves. Let us use this reserve to create a subsidy fund that will bring fuel prices back to where they were last month,” he said, suggesting that the reserves held at the Bank of Tanzania (BoT ) could provide immediate relief.

The proposals underscore growing anxiety among lawmakers as global tensions continue to ripple through energy markets, threatening to drive up costs and strain Tanzania’s economic stability.