Dar es Salaam – Effective April 1, 2026, the Energy and Water Utilities Regulatory Authority (EWURA) has announced a dramatic increase in fuel cap prices across the country.
In Dar es Salaam, the retail price of petrol has surged to Sh3,820 per litre, up from Sh2,864 in March.
Diesel, the lifeblood of the commercial transport sector, has jumped to Sh3,806 per litre, whilst kerosene, essential for lighting and cooking in many households, now costs Sh3,684 per litre.
The staggering price hikes—representing increases of over 33 per cent for petrol and diesel in just one month—are a direct consequence of the ongoing conflict between the United States, Israel, and Iran, which intensified on February 28, 2026.
According to EWURA, the war has led to attacks on oil fields, storage facilities, and refineries, with Iran’s closure of the Strait of Hormuz proving particularly consequential.
This critical chokepoint, through which approximately 20 per cent of the world’s transported oil passes, has been effectively shut down by Iranian threats and attacks on vessels.
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The disruption has triggered a shortage of cargo vessels and raised insurance premiums, leading to a massive spike in Free on Board (FOB) prices in the Arab Gulf market.
EWURA reports that FOB prices for April increased by 69.98 per cent for petrol, 114.46 per cent for diesel, and 120.81 per cent for kerosene.
The impact of these record-high prices will be felt most acutely by ordinary citizens and the broader economy.
Raphael Mgaya, Executive Director of the Tanzania Association of Oil Marketing Companies (TAOMAC), warned recently during an interview with this publication that the crisis is “bigger than COVID, bigger than the Russia-Ukraine war.”
The surge in diesel prices will inevitably lead to higher public transport fares and increased distribution costs for goods, which will quickly translate into higher food prices at the market.
Fixed-income earners, low-income households, and small traders will bear the brunt of this inflationary pressure. A paradox of the current crisis is that prices are skyrocketing even though Tanzania has sufficient fuel within its borders.
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On March 28, 2026, James Mataragio, Permanent Secretary of the Ministry of Energy, assured the public that the country has enough fuel to last for two to three months.
He detailed that Tanzania has over 563 million litres of petrol (sufficient for 91 days) and 530 million litres of diesel (sufficient for 64 days), including stocks in tanks, in transit, and under contract.
The disconnect between local supply and local prices lies in the mechanics of the global oil market. Because Tanzania imports all its refined petroleum products, local pump prices are inextricably linked to global benchmarks.
Even if physical stocks are present in the country, the replacement cost of that fuel is dictated by the current, inflated global market rates. As Mr Mgaya explained in our recent interview with him, “When global prices rise, it affects everyone. Even if you source from another market… benchmark pricing reflects the same global reality.”
The government is actively combating attempts by some unscrupulous traders to exploit the situation.
Mr Mataragio revealed that some retailers have been creating artificial shortages by hoarding fuel in anticipation of the April price hikes.
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He issued a stern warning that such actions constitute economic sabotage, a serious criminal offence, and directed EWURA and security agencies to take strict action against offenders.
Whilst the government has secured supply contracts through July and formed a joint task force to track shipments, the affordability of fuel remains a critical concern.
If the Middle East conflict persists, industry experts warn that prices could climb even higher, potentially reaching Sh4,700 per litre, pushing the economy to the brink.
