Tanzanians will enjoy slightly lower fuel prices in July 2025 despite rising global oil prices, thanks to a stronger local currency that helped ease the impact of higher international costs.
In a public notice issued on July 1, the Energy and Water Utilities Regulatory Authority (Ewura) announced new cap prices for petroleum products, showing a modest decline in retail pump prices across key ports, particularly Dar es Salaam and Tanga.
The retail cap price for petrol in Dar es Salaam has decreased to Sh2,877 per litre, down from Sh2,885 in June. Diesel now sells at Sh2,767, compared to Sh2,826 last month, while kerosene dropped significantly from Sh2,877 to Sh2,629.
In Tanga, petrol is now priced at Sh2,938, down slightly from Sh2,946. Diesel has fallen to Sh2,828 from Sh2,887, and kerosene to Sh2,690 from Sh2,938.
However, Mtwara continues to register the highest prices, with petrol at Sh2,969, diesel at Sh2,859 and kerosene at Sh2,722 per litre.
Ewura attributed the price reduction to a 4.98 percent decline in the average exchange rate for foreign currencies in June.
This exchange rate advantage helped absorb the shock from a global rise in fuel prices petrol by 6.8 percent, diesel by 9.3 percent, and kerosene by 8.1 percent based on international benchmarks.
“Despite global prices trending upwards, the appreciation of the Tanzanian shilling has played a key role in stabilising domestic pump prices,” Ewura stated.
At the port level, importation costs for July increased significantly for petrol (by 27.98 percent) and diesel (8.04 percent) through Dar es Salaam.
Kerosene costs, however, dropped by 5.64 percent. There were no significant import cost changes at the ports of Tanga and Mtwara.
Ewura reminded stakeholders that under the Petroleum Act, 2015, pricing of petroleum products in Tanzania is liberalised and guided by market dynamics.
The regulator publishes indicative and maximum prices each month to ensure transparency and fair competition.
“Oil marketing companies are free to set competitive prices, provided they do not exceed the approved cap prices or fall below legally permissible levels as set out in the 2022 fuel pricing regulations,” the authority clarified.
Retailers are required by law to display their fuel prices clearly and publicly on boards visible to consumers. Ewura also emphasised that any station failing to comply with this regulation will face strict penalties.
“Consumers are encouraged to make informed choices by purchasing fuel from stations offering lower prices. This not only helps individuals save but also promotes a healthy competitive environment in the petroleum sector,” the regulator added.
The price drop is expected to offer short-term relief to motorists, transport operators, and businesses whose operations are sensitive to fuel costs.
It also contributes to the broader goal of managing inflationary pressures in the economy, particularly in sectors such as transportation, agriculture, and manufacturing.
As Tanzania continues to import all its refined petroleum products mainly from the Arabian Gulf monthly fluctuations in the exchange rate and global prices will remain critical factors influencing domestic fuel prices.
While the July price adjustment is modest, it underscores the importance of macroeconomic stability especially foreign exchange management in shielding local consumers from volatile international markets.