Dar es Salaam. As the cost of living continues to rise following increases in fuel prices, workers’ unions have urged employers and the government to adopt measures to provide relief to employees so they can cope with these challenging times.
Representatives of workers from both the public and private sectors said it is important for employers to consider providing workplace meals and shared transport services for employees to help reduce the cost of commuting between home and work.
They said such measures are necessary because the cost of living has risen sharply while workers’ salaries have remained unchanged, leaving many employees struggling to make ends meet.
Workers are presenting these proposals at a time when fuel prices have increased globally due to disruptions in energy supply chains caused by the ongoing conflict in the Middle East.
The conflict, involving the United States and Israel against Iran, led to the destruction of key oil production infrastructure, while the Strait of Hormuz, through which about 20 percent of the world’s oil supply passes, was temporarily closed.
However, Hormuz has been reopened for two weeks, a development that followed the suspension of hostilities after negotiations between Iran and the United States began, although talks are reported to have stalled.
Responsibility for employers
Speaking to The Citizen’s sister newspaper, Mwananchi, the Tanzania Revenue Authority Workers’ Union (Tarewu) Secretary General, Mr Michael Marere, said rising fuel prices have affected many sectors of the economy while workers’ salaries have remained stagnant.
“During this period, employers should support workers in reducing their cost of living. For example, by providing shared transport or workplace meal services to ease financial pressure,” he said.
Economic analyst, Mr Oscar Mkude, said the cost of transport, food, and other essential services has increased significantly, making it difficult for workers to survive on their current earnings.
He said employers have traditionally paid relatively low wages, so when living conditions change suddenly, the impact on workers becomes particularly severe.
“At this time, it is important for employers to treat the situation as an emergency and provide cost-of-living relief for employees, at least for several months until the situation stabilises,” he said.
Apart from that, Mr Mkude said that since the government is responsible for safeguarding citizens’ welfare, it should consider removing part of the tax imposed on workers’ salaries to provide relief during this difficult period.
“The government should review alternative revenue sources so that it can reduce the tax currently charged on salaries. This will help because even if wages are not increased, workers will retain more of their income,” he said.
Taxes on salaries should be reduced
The Tanzania Private Schools Teachers’ Union (TPTU) Secretary General, Mr Julius Mabula, said that to support workers, the government should conduct an urgent salary review based on inflation and establish a system for annual wage adjustments in line with economic conditions.
“In addition, the government should reduce pay-as-you-earn (PAYE) for low-income earners to improve their ability to cope with rising living costs. It should also strengthen price control mechanisms and ensure that the supply of essential food commodities remains stable and affordable,” he said.
Regarding rising transport costs, he suggested that the government introduce subsidies for public transport or create incentives encouraging employers to provide transport allowances for their workers.
He also said the government, through the Bank of Tanzania (BoT), should implement firm measures to control inflation using appropriate monetary and fiscal policies.
He said instead of companies focusing primarily on corporate social responsibility (CSR) initiatives, it is more important for them to provide direct emergency support to their employees during this period of escalating living costs.
“The government should take immediate and strategic steps to protect workers’ welfare because workers are the backbone of production and national development. Without supporting workers, the country’s economy cannot remain stable,” he said.
For his part, the Trade Union Congress of Tanzania (Tucta) President, Mr Tumaini Nyamhokya, said the effects of rising fuel prices are global and not unique to Tanzania.
He said fuel costs affect many sectors, including food production and transport, although in the health sector, the impact is less visible due to government-subsidised services.
“We workers are suffering just like other citizens. We urge the government to review fuel pricing policies because the impact is significant. If possible, it should utilise fuel reserves to reduce the severity of this situation,” he said.
He also advised the government to regulate traders to ensure they sell fuel based on the price at which it was purchased, rather than applying new prices to existing stock.
Workers suffer the most
The Research, Academic and Allied Workers’ Union (RAAWU) National Chairperson, Ms Jane Mihanji, said the rise in fuel prices is driven largely by global factors, but workers continue to bear the greatest burden.
“Workers are among the largest taxpayers because deductions are made directly from their salaries. We urge the government to identify practical solutions to ease the pressure created by this situation,” she said.
She added that even households relying on cooking gas have been affected, while the cost of food and other essential services continues to rise steadily.
Ms Mihanji also called on countries involved in armed conflicts to pursue peaceful resolutions, noting that such disputes affect even nations that are not directly engaged.
“I urge workers to remain calm as we wait for government action,” she said.
On the other hand, the Tanzania Plantation and Agricultural Workers’ Union (TPAWU) Secretary General, Mr John Vaaye, said the increase in fuel prices has dealt a heavy blow, particularly to private sector workers in rural communities.
“We are experiencing severe hardship due to the rising cost of living while our incomes remain low. The government should identify sustainable ways to reduce this burden,” he said.
Salaries should be increased
Economist and business expert, Dr Donath Olomi, said that although salary increases may be difficult to implement immediately, sectors such as transport, where operational costs are rising rapidly, should consider adjusting wages.
“Even workers in manufacturing industries can have their wages reviewed. We do not know how long this situation will persist. Still, if it continues for an extended period, employers should consider increasing salaries, particularly by reviewing the minimum wage,” he said.
Government measures
At the beginning of April 2026, Prime Minister Dr Mwigulu Nchemba, while presenting the 2026/2027 budget in Parliament in Dodoma, addressed the issue of rising fuel prices and said the government is actively working on solutions.
“We have observed prices beginning to rise. We will ensure that appropriate measures are taken to address this challenge so citizens can continue accessing fuel at affordable prices while controlling the rising cost of living,” he said.
On April 7, 2026, the Permanent Secretary in the Ministry of Energy responsible for Petroleum and Natural Gas, Dr James Mataragio, said an official statement would be issued once all required procedures had been completed.
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