Bus and truck owners as well as commuter transport providers say the fuel price hike, linked to the US-Israel war on Iran, threatens the survival of their businesses
Dar es Salaam. The February 28, 2026 US-Israeli invasion of Iran, and the resulting disruption to petroleum supply chains, is affecting nearly all sectors of Tanzania’s economy. Transport operators are now calling for immediate fare adjustments following a historic surge in fuel prices.
Bus owners, truck operators and commuter transport providers say the fuel price hike, linked to the US-Israel war on Iran, threatens the survival of their businesses if fare increases are delayed.
However, the Land Transport Regulatory Authority (Latra) has warned operators against raising fares without approval. Latra director general Habibu Suluo said all operators must follow laid-down procedures before making any adjustments.
He stressed that unauthorised fare increases would impose an unfair burden on passengers.
“Petrol and diesel prices have risen in Dar es Salaam, with even steeper increases in upcountry regions. Some operators have already raised fares without approval. Any adjustment must comply with regulations,” he said.
The surge in fuel prices is affecting urban commuter buses, commonly known as dealadala. It is also impacting long-distance and cross-border transport services.
Mr Suluo linked the rise to ongoing geopolitical tensions in the Middle East, which have disrupted global oil markets. He noted that the Energy and Water Utilities Regulatory Authority (Ewura), which regulates fuel prices, had anticipated price adjustments. However, the scale of the increase exceeded earlier expectations.
Latra has scheduled a public stakeholders’ meeting in Dar es Salaam on April 8. The meeting will also be streamed online to allow wider participation.
Under current regulations, operators seeking fare adjustments must submit evidence showing that their return on investment has fallen below 10 percent over a defined period.
Latra will review the submissions alongside feedback from commuters and other stakeholders before approving any changes. Even after approval, new fares only take effect after publication in the Government Gazette and a mandatory 14-day waiting period.
Mr Suluo urged operators to remain calm. He reassured passengers that Latra seeks to balance service sustainability with protection against sudden fare increases.
The call for fare adjustments follows Ewura’s fuel price revisions for April 2026. Petrol is now set at Sh3,820 per litre, up from Sh2,864 in March. This represents a 33.4 percent increase. Diesel has risen to Sh3,806 per litre from Sh2,858, while kerosene now costs Sh3,684, up from Sh2,932.
The increase is linked to supply disruptions in Iran affecting major oil infrastructure and shipping routes, including the Strait of Hormuz. Global crude prices have climbed above $100 per barrel, with Brent crude trading between $105 and $108.
Secretary General of the Tanzania Bus Owners Association (Taboa) Priscus John said bus fares need to increase immediately or operators risk bankruptcy. He noted that even before the latest fuel price announcement, the cost of other inputs, including spare parts, had already increased. Many suppliers have cited the ongoing conflict as the cause.
He added that a vehicle making a 500-litre round trip now incurs an additional cost of about Sh500,000 per day.
Secretary of the Dar es Salaam Regional Commuter Bus Owners Association Shifaya Anselma said the situation affects the entire country and requires structured dialogue. He noted that discussions with government institutions are necessary to ensure transport services continue operating despite rising costs.
Chairman of the Tanzania Truck Owners Association (Tamstoa) Chuki Shaban called on the government to consider reducing fuel-related levies in the short term. He said the impact extends beyond commercial operators to private vehicle users engaged in essential activities.
He warned that high fuel costs also affect non-commercial users, including farmers and professionals.
Executive Director of the Tanzania Association of Oil Marketing Companies (Taomac) Raphael Mgaya cautioned that fuel prices could rise further. He said current prices remain relatively moderate because some previously imported fuel is still available in the country.
“Next month, prices are likely to increase further when new imports dominate the market. All goods will become more expensive. People need to prepare,” he said.
Mr Mgaya urged citizens and businesses to reduce fuel consumption by sharing vehicles or adopting remote work where possible. He also stressed the need to monitor hoarding and enforce limits to prevent stockpiling. He noted that reducing taxes could provide limited relief, but fuel would remain costly because taxes account for roughly 30 percent of the retail price.
In response to the situation, the government has moved to stabilise supply.
The Tanzania Petroleum Development Corporation (TPDC) has been assigned to import and distribute petroleum products between May and July. The move aims to leverage bulk procurement to secure more favourable prices.
Energy Ministry Permanent Secretary James Mataragio said Tanzania currently holds sufficient fuel reserves for at least 90 days. He noted that this provides a degree of stability even as global uncertainties persist.
