Des Salaam – The Land Transport Regulatory Authority (LATRA) convened a critical stakeholder meeting on April 8, 2026, at Karimjee Hall in the city to receive input from transport operators on how to address the impact of the fuel crisis on public transport services. 

The meeting revealed stark divisions between different transport sectors and exposed tensions between regulatory constraints and operational realities.

The fuel price increase of approximately Sh950 per litre—representing a surge of nearly 30 per cent since 2022—has created an unprecedented crisis for the transport sector. Operators from three major transport categories presented detailed cost analyses and competing demands to LATRA Director General Habibu Suluo and his team.

Ebod Ford, Chairperson of the Tanzania Online Drivers Association (TODA), presented a compelling case for the unique vulnerability of online taxi drivers. Unlike bus owners or daladala operators who can distribute costs across multiple revenue streams, online taxi drivers bear virtually all operational costs personally whilst paying platform commissions of 15 to 25 per cent on every fare.

“In the online taxi business, the driver is the merchant of the business. The driver puts in fuel every day, the driver ensures the vehicle is in good condition, the driver finds customers through different applications, and the driver pays commissions to those applications,” he said. “This is different from other transport sectors where the vehicle owner can absorb some costs. For online taxi drivers, every cost falls on the driver.”

The financial pressure has become acute. Drivers typically allocate 25 per cent of their gross income to fuel costs, leaving minimal margins for profit. As a result, drivers have begun refusing short trips (under five kilometres) that were previously profitable, and many are now operating outside the platform system to avoid paying commissions—a development that undermines both the platform operators and LATRA’s revenue collection.

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This off-platform activity creates additional problems beyond lost revenue. Passengers using unregistered taxis face security risks, as there is no way to trace the vehicle or driver if an incident occurs. Drivers, too, lack the protection and insurance coverage provided by official platforms.

TODA presented a four-point emergency plan. First, the association called for an immediate fare review given the magnitude of the fuel price increase. Second, they demanded that platform operators reduce their commissions by 10 per cent as an emergency measure during the crisis period. 

Third, they urged the government to reduce the 18 different taxes and levies applied to fuel. Fourth, they called for a temporary 60 to 90-day fuel relief window and greater investment in alternative energy sources, particularly natural gas for vehicles.

Bus operators’ financial reality

Representatives from the Tanzania Bus Owners Association (TABOA) presented detailed financial models to demonstrate the unsustainability of current fares. One operator provided a comprehensive cost analysis for a bus route from Dar es Salaam to Singida (720 kilometres), revealing the scale of the financial burden.

The bus, purchased for Sh544 million with 50 per cent financed through a loan at 18 per cent annual interest, is expected to operate for five years before depreciating to a book value of Sh178 million. Annual insurance costs alone amount to Sh53.2 million. The bus, with a capacity of 53 passengers and an expected occupancy rate of 70 percent, carries about 11,241 passengers annually.

The financial breakdown is stark. Annual fuel costs total approximately 89,881 litres at current prices. Annual maintenance costs reach Sh4.3 million. Accounting for 62 days of downtime for servicing, the bus operates only 303 days per year. The total annual operational cost, including depreciation, interest on the loan, insurance, salaries, and maintenance, reaches Sh6.39 billion.

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Based on this analysis, the operator calculated that the economic fare per passenger should be Sh831, or Sh112 per kilometre. Current fares, the operator argued, fall far short of these requirements.

Daladala operators’ desperation

Representatives of the Umoja wa Wamiliki Daladala (Uwamadar), which represents daladala operators, presented a more emotional case, describing the financial devastation afflicting daladala operators across the country. The operators’ primary grievance centres on the regulatory framework that requires fare reviews only every three years.

The last fare review occurred in 2023, and the next scheduled review is in 2026—but the fuel crisis struck before the three-year cycle was completed. The operators argue that this inflexible system is unjust, particularly when other transport sectors (such as railway operators) adjust fares regularly to reflect changing costs.

One operator described the human cost of the crisis: “I owned 22 vehicles in 2014. Today, I own none. I am bankrupt. I am not a drunkard, I am not a criminal, I am not immoral. I am simply bankrupted by the inability to sustain my business during periods of crisis.”

The daladala operators also complained about increased regulatory penalties and fines imposed by LATRA. They noted that LATRA has recently increased fines and penalties, and operators must now pay immediately or face additional penalties. During a crisis period, this creates additional financial pressure on already-struggling operators.

Moreover, the operators pointed out that they bear social obligations that other transport sectors do not. Many daladala operators carry students at a subsidized rate of Sh200 per journey—a commitment made voluntarily to a regional commissioner more than a decade ago and maintained ever since. This social burden, they argue, should be recognised in any fare review process.

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The daladala operators made clear threats about the consequences of inaction. If fares are not increased substantially, they warned, many operators will suspend services rather than operate at a loss. Some operators are already considering switching to cargo transport as an alternative to passenger services.

One operator noted: “If I put fuel at Sh4,000 and then charge a passenger Sh200 for students, how can I make money? That is a loss, Director General. We do not want to strike. We prefer to suspend services temporarily until the situation improves. But we cannot continue operating at a loss.”

LATRA’s constrained response

LATRA Director General Habibu Suluo acknowledged the severity of the crisis and committed to conducting a comprehensive fare review. However, his response revealed the regulatory constraints within which LATRA operates.

“LATRA has the authority under Section 19 of the LATRA Act to review fares when circumstances warrant,” he said. “Our regulations require that we consider the interests of both consumers and service providers, as well as actual operational costs. We will conduct a thorough review based on the input we have received today.”

However, Suluo did not commit to an emergency fare review before the three-year cycle completes, nor did he indicate that LATRA would suspend its regulatory requirements during the crisis period. 

This apparent inflexibility frustrated many operators, who argued that regulations should be flexible enough to accommodate genuine emergencies.