Tanzanian consumers will pay less for petrol, diesel and kerosene from July 1, 2026, after lower global oil prices prompted a reduction in the country's fuel price caps.
The Energy and Water Utilities Regulatory Authority (EWURA) announced that the new prices take effect on Wednesday, offering relief to motorists, transport operators and businesses that have faced high fuel costs in recent months.
Under the latest monthly review, the maximum retail price of petrol has been reduced by TZS96 per litre, while diesel has fallen by TZS151 per litre and kerosene by TZS242 per litre.
EWURA said the adjustments reflect a decline in international petroleum prices, which form a key component in determining domestic fuel prices under Tanzania's fuel pricing formula.
The regulator attributed the easing of global oil prices to improving geopolitical conditions in the Middle East.
It said a recent agreement between the United States and Iran over the ongoing regional conflict, coupled with the reopening of oil tanker traffic through the Strait of Hormuz, has eased supply concerns and improved the flow of crude oil to international markets.
According to EWURA, the improved supply outlook has reduced pressure on global oil supply chains, resulting in lower import costs that have been passed on to Tanzanian consumers through the revised price caps.
However, the regulator cautioned that despite the latest reductions, average global petroleum prices remain above the levels recorded before the Middle East conflict began on February 28, 2026.
As a result, international oil markets have not yet fully returned to pre-conflict levels.
The latest adjustment is expected to lower transport and operating costs across several sectors of the economy, although future domestic fuel prices will continue to depend on trends in the global oil market and other factors considered under EWURA's monthly pricing mechanism.
