Tanzanians are expected to begin paying less for petrol and diesel from July after a sharp decline in global crude oil prices following the easing of tensions in the Middle East, Energy Minister Deogratius Ndejembi has said.
The anticipated reduction comes after weeks of volatility in international oil markets triggered by the conflict involving Iran, Israel and the United States, which disrupted shipping through the Strait of Hormuz—one of the world's most critical oil transit routes.
Addressing Parliament on Friday, Mr Ndejembi said the government has directed the Energy and Water Utilities Regulatory Authority (EWURA), the Tanzania Petroleum Development Corporation (TPDC) and the Petroleum Bulk Procurement Agency (PBPA) to ensure the benefits of lower international oil prices are reflected in domestic fuel prices.
The minister was responding to concerns raised by Bagamoyo Member of Parliament and Chairperson of the Parliamentary Standing Committee on Energy and Minerals, Subira Mgalu, over the impact of global oil market fluctuations on Tanzanian consumers.
He said although the Middle East conflict created uncertainty in global energy markets and disrupted oil transportation through the Strait of Hormuz, Tanzania maintained uninterrupted fuel supplies throughout the period.
According to the minister, timely government interventions prevented fuel shortages across the country, allowing Tanzania to remain among the East African countries with comparatively affordable pump prices despite the international market turmoil.
Mr Ndejembi said global crude oil prices have now started falling after a ceasefire agreement reduced geopolitical tensions, with benchmark prices declining to around $70 per barrel.
He explained that because fuel sold in Tanzania is procured in advance, consumers will not experience immediate price changes. Instead, the impact will be seen progressively as new shipments purchased at lower international prices arrive in the country.
"Tanzanians will begin to see lower fuel prices from July. As more consignments bought at reduced prices continue arriving, the prices are expected to decline further," he told Parliament.
The minister said analysts in the international energy market expect crude oil prices to return to levels recorded before the conflict began in February within the next eight to ten weeks, provided the ceasefire holds and supply chains remain stable.
Looking beyond the immediate price relief, Mr Ndejembi said the government is pursuing long-term measures to strengthen the country's energy security and reduce its vulnerability to global supply disruptions.
The initiatives include diversifying sources of petroleum imports and accelerating implementation of the proposed oil refinery project in Tanga Region, which is expected to boost local refining capacity and enhance the country's resilience against future external shocks.
The latest announcement is likely to be welcomed by households, transport operators and businesses, as fuel costs have a significant influence on transport fares, food prices and the overall cost of living.
A sustained decline in pump prices could help ease inflationary pressures and lower operating costs across key sectors of the economy.
