Dar es Salaam – The Energy and Water Utilities Regulatory Authority (EWURA) has announced a reduction in retail cap prices for petroleum products effective July 1, 2026, delivering on recent government promises of price relief.
The price drops mark the first substantial decrease since the global fuel crisis began in late February, though the reductions are modest compared to the massive surges experienced earlier this year.
According to the official EWURA announcement, retail prices in Dar es Salaam have decreased to Sh3,990 per litre for petrol, Sh4,182 for diesel, and Sh4,443 for kerosene. These represent month-on-month decreases from June of Sh96 for petrol, Sh151 for diesel, and Sh242 for kerosene.
The price reductions follow a recent ceasefire agreement between the United States and Iran, which has allowed the reopening of the Strait of Hormuz to commercial vessels carrying fuel.
EWURA noted that refineries have resumed sourcing crude oil from non-conflict areas, easing concerns over supply security that had driven prices to record highs in previous months.
READ MORE: Government Promises Fuel Price Relief From July
Despite the July reductions, fuel prices remain devastatingly high for ordinary citizens compared to the beginning of the year. The current crisis, triggered by the February 28 outbreak of conflict in the Middle East, severely disrupted global petroleum supply chains and sent import costs soaring.
Since January 2026, when petrol cost Sh2,778 per litre, prices have surged by 43.6 per cent to the current Sh3,990. Diesel, the lifeblood of the commercial transport sector, remains 53.4 per cent higher than its January price of Sh2,726.
Kerosene, essential for lighting and cooking in many low-income households, has experienced the most severe sustained shock, remaining 60.8 per cent higher than its January price of Sh2,763.
The modest July relief comes after a particularly brutal period for consumers. In April, prices surged over 30 per cent in a single month, and May saw further increases that pushed petrol to Sh4,115 and diesel to Sh4,248.
June brought mixed results, with petrol dropping slightly while diesel increased despite a government subsidy of Sh534 per litre.
READ MORE: Tanzania’s Fuel Prices Surge Again in May
The July price drops align with assurances made by Minister for Energy Deogratius Ndejembi in Parliament on June 26. The Minister stated: “We have instructed EWURA to make sure Tanzanians start seeing reductions in the fuel prices that will be announced from next month.”
He noted that Brent crude had dropped from more than US$112.9 per barrel on April 7, 2026, to about US$87.3 by May 30, before declining further following the ceasefire.
However, the modest nature of the reductions has fuelled ongoing scepticism from opposition parties. In its recent analysis of the 2026/27 national budget, the opposition party ACT Wazalendo argued that Tanzanians have yet to fully benefit from falling international oil prices, raising concerns about the country’s fuel import arrangements and subsidy effectiveness.
Tanzania imports 100 per cent of its petroleum products, with approximately 61 per cent coming from the Middle East through the Strait of Hormuz. This heavy reliance on a volatile region has left the country highly exposed to geopolitical shocks, prompting government commitments to diversify supply sources.
The burden of high fuel prices continues to fall disproportionately on citizens in remote regions due to internal transportation costs. While Dar es Salaam residents pay Sh3,990 for petrol, consumers in Kagera (Bukoba) must pay Sh4,241, and those in remote districts like Kyerwa face prices of Sh4,263 per litre.
READ MORE: Tanzania’s Fuel Prices Surge to Record Highs as Middle East War Drives Global Oil Crisis
For the transport sector, the Sh151 drop in diesel prices offers a small margin of relief, but operating costs remain unsustainably high compared to early 2026.
Transport operators have previously warned that current regulated fares are insufficient to cover the inflated fuel costs, threatening the viability of public transport networks that millions rely upon daily.
