Dar es Salaam – The Energy and Water Utilities Regulatory Authority (EWURA) announced on May 6, 2026, that retail cap prices for petroleum products have increased significantly for the month.
The announcement marks a continuation of the crisis that has gripped the country since late February, when the Middle East conflict began disrupting global oil supplies.
According to the official EWURA announcement, retail prices in Dar es Salaam have increased to Sh4,115 per litre for petrol, Sh4,248 for diesel, and Sh4,677 for kerosene, effective from 6:01 AM on May 6.
These represent substantial increases from April levels: petrol rose by Sh295 (7.7 per cent), diesel by Sh442 (11.6 per cent), and kerosene by Sh993 (27.0 per cent).
Whilst global oil prices have fluctuated wildly in recent days, with a fragile ceasefire in the Strait of Hormuz dispute allowing some ships to transit, the Free On Board (FOB) prices for refined petroleum products received through the Port of Dar es Salaam in May showed only marginal increases of 6.2 per cent for petrol and 5.4 per cent for diesel, according to EWURA.
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This disconnect between modest global price increases and sharp local price hikes suggests that currency depreciation and elevated freight and insurance costs continue to drive local prices upward.
The May prices represent a staggering cumulative increase since the crisis began. Since January 2026, when petrol cost Sh2,778 per litre, prices have surged to Sh4,115 —a 48.1 per cent increase in just four months.
Diesel has climbed even more dramatically, from Sh2,726 in January to Sh4,248 in May, representing a 55.8 per cent increase. Kerosene has experienced the most severe price shock, rising from Sh2,763 in January to Sh4,677 in May—a 69.3 per cent increase.
The March announcement had already signalled the beginning of the crisis, with prices jumping sharply following the February 28 outbreak of conflict between the United States, Israel, and Iran.
In April, prices surged over 30 per cent in a single month, with petrol reaching Sh3,820, diesel Sh3,806, and kerosene Sh3,684. The May increases suggest that the crisis shows no signs of abating, despite government assurances and apparent progress towards resolving the Middle East conflict.
Regional disparities
The EWURA price schedule reveals that regional disparities have intensified alongside the overall price crisis. The price variation between the cheapest and most expensive locations has widened to 6.6 per cent, with consumers in remote areas bearing a disproportionate burden.
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Consumers in Dar es Salaam enjoy the lowest prices at Sh4,115 for petrol. In contrast, residents in remote districts like Kyerwa (Ruberwa) in the Kagera region face the highest prices in the country, paying Sh4,388 for petrol and Sh4,521 for diesel.
These variations reflect the substantial internal transportation costs required to move fuel from coastal depots to inland regions, costs that have themselves been inflated by the global fuel crisis.
For ordinary citizens in these remote areas, the sustained high prices continue to devastate household budgets.
Kerosene, a vital energy source for lighting and cooking in rural homes without electricity access, remains prohibitively expensive, peaking at Sh4,950 per litre in the most remote districts. This represents a 79.4 per cent increase from the January price of 2,763 TZS.
Transport sector in crisis
The May price increases pose an existential threat to the transport sector, which had already warned of imminent collapse in April. In April, transport operators presented detailed financial analyses to the Land Transport Regulatory Authority (LATRA), demonstrating that their businesses were no longer viable at current fare levels.
Online taxi drivers reported allocating 25 per cent of their gross income to fuel, whilst daladala (minibus) operators warned of imminent service suspensions. Bus operators had calculated that economic fares should reach Sh831 per passenger for the Dar es Salaam to Singida route, far exceeding current regulated fares.
READ MORE: Tanzania’s Transport Operators Demand Emergency Fare Review, Warn of Service Suspensions
The May price increases, particularly the 11.6 per cent surge in diesel, make these calculations even more dire.
Many operators have threatened to suspend services rather than continue operating at a loss, which they later withdrew following talks with the government. The May increases suggest that these threats may soon become reality, with potentially catastrophic consequences for millions of Tanzanians who depend on public transport for daily mobility.
Bleak outlook
EWURA has advised consumers to verify official cap prices using the free USSD code 15200# and to demand itemised receipts for all fuel purchases. However, such consumer protections offer little comfort when prices are rising at this pace.
The future trajectory of fuel prices remains entirely dependent on developments in the Middle East. If the fragile ceasefire holds and commercial shipping through the Strait of Hormuz normalises, prices may eventually begin to recede.
However, the May increases suggest that even with global stabilisation, local prices will remain elevated for months to come due to currency depreciation and elevated freight costs.
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Any further escalation in the Middle East could quickly push prices even higher, potentially reaching the Sh10,000 per litre level that industry experts warned about in April.
For now, citizens and businesses must navigate an economy fundamentally altered by the fuel crisis, with no clear end in sight.
