Motorists and businesses across Tanzania will dig deeper into their pockets this April after fuel prices rose sharply following disruptions in global oil supply linked to escalating tensions in the Middle East.
The new petroleum price caps announced by the Energy and Water Utilities Regulatory Authority (EWURA) show significant increases in petrol, diesel and kerosene across the country’s main fuel import entry points.
In Dar es Salaam, petrol now sells at Sh3,820 per litre, up from Sh2,864 in March, representing an increase of about Sh956 per litre.
Diesel prices have also climbed to Sh3,806 per litre from Sh2,858, while kerosene now costs Sh3,684 compared with Sh2,932 recorded in March.
Similar increases were recorded in Tanga, where petrol rose to Sh3,881 per litre in April from *Sh2,925 in March, while diesel increased to Sh3,867 from Sh2,919 and kerosene climbed to Sh3,745 from Sh2,993.
At the southern port of Mtwara, petrol is now retailing at Sh3,912 per litre, up from Sh2,956 recorded in March. Diesel rose to Sh3,898 from Sh2,951, while kerosene increased to Sh3,777 per litre compared with Sh3,025 last month.
The regulator said the price rise reflects sharp increases in global fuel procurement costs driven by the ongoing conflict involving Iran, Israel and the United States.
The conflict has disrupted shipping routes through the strategic Strait of Hormuz, a key oil transit corridor that handles nearly 20 percent of global petroleum supplies.
EWURA noted that the disruptions have pushed up international prices of refined petroleum products and increased freight and insurance costs for oil shipments heading to importing countries such as Tanzania.
Data released by the regulator show that Free on Board (FOB) prices for petroleum products in the Arab Gulf surged significantly during the period.
Diesel procurement costs rose by 114.46 percent, kerosene by 120.81 percent, and petrol by 69.98 percent.
The regulator explained that the increase reflects disruptions in supply chains and temporary closures of some oil facilities and refineries in the Middle East, which remains a major source of Tanzania’s refined petroleum imports.
Shipping costs have also increased as oil tankers traveling through the Gulf region face higher insurance premiums due to rising security risks.
Although the exchange rate of the US dollar declined slightly by about 0.45 percent, EWURA said the marginal improvement in the currency was not enough to offset the sharp increase in global fuel prices.
The increase is expected to affect several sectors of the economy, particularly transportation, which relies heavily on petroleum products.
Higher fuel prices often lead to increased transport fares and freight costs, which may eventually push up the prices of goods and services across the country.
Despite the price increase, EWURA said Tanzania still has adequate petroleum stocks to meet domestic demand.
The regulator also warned fuel retailers against selling above the approved price caps and directed all petrol stations to display pump prices clearly on visible boards.
Consumers can verify official fuel price caps for their specific locations by dialing 15200# on their mobile phones.
EWURA said it will continue monitoring developments in global oil markets to ensure stable fuel supply while protecting consumers from unfair pricing practices.
