Tanzania could increase revenue from fuel transit trade and strengthen its position as a regional logistics hub by reducing costs associated with petroleum imports and transportation, a petroleum sector stakeholder has said.
Dr Sajad Habib Rai, a petroleum industry expert and Resident Manager of Mansoor Industries, said lower import and transit costs would make Tanzanian ports more competitive, attracting a greater number of fuel shipments destined for both domestic consumption and neighbouring countries.
Speaking in Dar es Salaam, Dr Rai said competitive pricing would encourage more oil tankers to discharge petroleum products at Tanzanian ports, increasing business volumes throughout the fuel supply chain.
“If costs are reduced for fuel entering through our ports, the number of vessels unloading petroleum products will increase. Similar approaches have been adopted by a number of ports across Africa to attract more trade,” he said.
He added that higher fuel volumes would also create opportunities for local transport companies, particularly trucking firms involved in moving petroleum products to inland markets and neighbouring countries.
The comments come shortly after the Energy and Water Utilities Regulatory Authority (EWURA) announced revised fuel price caps effective June 3, 2026.
Under the new pricing structure, petrol in Dar es Salaam is selling at Sh4,086 per litre, diesel at Sh4,333 per litre and kerosene at Sh4,685 per litre.
Dr Rai praised the government for measures aimed at shielding consumers from sharp increases in global fuel prices despite continued volatility in international energy markets.
He said Tanzania’s fuel pricing policies have helped maintain relatively affordable prices compared to several countries in the East and Southern African regions.
“The government has continued to implement measures that ease the burden of fuel costs on citizens. Maintaining stable prices in the current global environment is an important achievement,” he said.
Global energy markets have faced pressure from geopolitical tensions in the Middle East and disruptions to major shipping routes, factors that have contributed to higher fuel and transportation costs worldwide.
Despite these challenges, Tanzania has continued to support fuel affordability through various interventions, including a diesel subsidy of Sh534.91 per litre, according to EWURA.
The regulator also reported that petrol prices declined by more than Sh30 per litre compared to the previous month.
Economists note that stable fuel prices are critical for sectors such as transportation, manufacturing, agriculture and trade, which depend heavily on petroleum products. Lower fuel costs can also help contain inflationary pressures and support economic growth.
As competition intensifies among regional ports seeking to capture transit trade, industry players say measures that improve efficiency and reduce costs could further enhance Tanzania’s attractiveness as a gateway for petroleum products serving East and Central Africa.
