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Pain at the pump: Why relief is on the way
Fuel prices in Tanzania have risen for the third consecutive month. PHOTO | FILE
What you need to know:
- Prices of petroleum products, which have been rising in the local market for three consecutive months, are expected to stabilise in the coming months
Dar es Salaam. Prices of petroleum products, which have been rising in the local market for three consecutive months, are expected to stabilise in the coming months, analysts say.
According to oil marketing companies and authorities, this will largely depend on seasonal factors that influence the value of the Tanzanian shilling against the US dollar.
“We expect stability if the availability of dollars continues. To a large extent, the increase in fuel prices was influenced by challenges around the supply of dollars in the country,” Tanzania Association of Oil Marketing Companies (Taomac) executive director Raphael Mgaya said.
He added that fuel suppliers still face difficulties in accessing dollars in the local market, forcing them to use the euro, which is even more expensive.
Mr Mgaya noted that consultations with the government were ongoing to address the situation and urged the Bank of Tanzania (BoT) to continue monitoring the trend and take appropriate measures.
BoT governor Emmanuel Tutuba said fuel prices are influenced by several factors, including global market conditions and noted that the depreciation of the local currency was just a minor issue.
He added, however, that Tanzania anticipates an economic boost in May and June, driven by peak agricultural and tourism activities.
“This increase in activity is expected to bring in more foreign currency, especially US dollars.”
This comes as Tanzanian motorists brace for higher fuel costs due to the shilling’s depreciation, which has driven up pump prices.
The local currency has been losing value against the US dollar—the primary currency for international trade—over the past few months, leading to increased costs for imported goods, including petroleum products.
For instance, the Tanzanian shilling, which closed 2024 at a mean exchange rate of Sh2,394.76 per dollar, depreciated to Sh2,486.64 by the end of January 2025. By February, the shilling stood at an average exchange rate of Sh2,581.29 against the dollar before weakening further to Sh2,657.01 as of Wednesday.
According to the Energy and Water Utilities Regulatory Authority (Ewura), this depreciation has offset the benefits of declining free on board (FoB) prices and reduced premiums, resulting in an overall increase in local fuel prices.
In its latest calculations, Ewura based its reference prices on the Arab Gulf market, reporting a decrease in FoB prices for April 2025. Petrol saw a 6.92 per cent drop, diesel decreased by 6.57 per cent and kerosene declined by 7.82 per cent.
“In April 2025, premiums decreased by an average of 6.08 per cent for petrol and 7.09 per cent for diesel, but kerosene saw a slight increase of 1.11 per cent at Dar es Salaam Port. There were no changes at Tanga Port, while premiums at Mtwara Port decreased by 4.00 per cent for both petrol and diesel,” the authority said.
Despite these reductions, fuel prices have continued to rise. According to a statement signed by Ewura director general James Mwainyekule, petrol prices in Dar es Salaam have increased to Sh3,037 per litre in April, up from Sh2,996 in March. Diesel prices have climbed to Sh2,936 per litre from Sh2,885, while kerosene now costs Sh3,053 per litre, up from Sh3,036.
In Tanga, where import costs remained unchanged, consumers will still face higher fuel prices. Petrol now retails at Sh3,083 per litre, up from Sh3,042, while diesel prices have risen to Sh2,982 from Sh2,932. Kerosene has seen the steepest increase, now costing Sh3,099 per litre, up from Sh2,958.
For fuel imported through Mtwara Port, prices have also surged. Petrol now costs Sh3,109 per litre, up from Sh3,069 last month. Diesel has increased to Sh3,008 from Sh2,958, while kerosene now retails at Sh3,125 per litre, compared to Sh3,108 in March.
Third consecutive monthly increase
This marks the third consecutive month of rising fuel prices in Tanzania, primarily due to the depreciation of the Tanzanian shilling against the US dollar.
In March 2025, the prices for petrol, diesel and kerosene in Dar es Salaam rose by 6.27 per cent, 6.73 per cent and 12.02 per cent, respectively.
Similarly, motorists in Tanga paid Sh3,042 for a litre of petrol, while diesel and kerosene fetched Sh2,932 and Sh3,082, respectively. That was an increase from Sh2,825, Sh2,746 and Sh2,756 for the three products, respectively.
In Mtwara, petrol, diesel and kerosene prices in March stood at Sh3,069, Sh2,958 and Sh3,108, up from Sh2,892, Sh2,775 and Sh2,782, respectively.
Compliance measures
Ewura has instructed petroleum companies to ensure that pump prices remain within the regulated range, adhering to the 2022 Fuel Pricing Regulations. The authority has also mandated that all filling stations prominently display their fuel prices, including any discounts or incentives.
“Consumers are advised to purchase fuel from stations that offer competitive prices and better services,” the statement said.
Failure to comply with pricing regulations will result in penalties. Fuel retailers are also required to issue Electronic Fiscal Pump Printer (EFPP) receipts to customers, detailing the station’s name, date of purchase, type of fuel and price per litre.
“These receipts serve as proof of purchase in the event of complaints regarding overpricing or substandard fuel quality. They also ensure that government taxes on petroleum sales are fully accounted for,” Ewura said.
