Dodoma. The government has assured Tanzanians that retail fuel prices will begin to decline from July as lower-cost fuel consignments enter the country, raising hopes of relief after months of sharp price increases driven by global market disruptions.
The assurance comes despite public concern over rising domestic fuel prices, even as international crude oil prices have fallen significantly from their peaks earlier this year. Brent crude dropped from more than $112.9 per barrel on April 7, 2026, to about $87.3 by May 30, before declining further following a temporary ceasefire in the Middle East.
Speaking in Parliament during the conclusion of the Third Meeting of the 13th Parliament on June 26, 2026, Minister for Energy Deogratius Ndejembi said the government had directed the Energy and Water Utilities Regulatory Authority (EWURA) to ensure consumers begin benefiting from the lower international prices.
“We have instructed EWURA to make sure Tanzanians start seeing reductions in the fuel prices that will be announced from next month,” Ndejembi told lawmakers.
He said the government would continue monitoring developments in the Middle East, where geopolitical tensions have disrupted global energy markets.
“Tanzania imports 100 percent of its petroleum products. Of those imports, about 61 percent come from the Middle East through the Strait of Hormuz, while around 40 percent are sourced from India. We will continue diversifying our supply sources to strengthen the country’s energy security,” he said.
The conflict that escalated in early March 2026 following Israeli and U.S. military strikes against Iran triggered instability in global oil markets.
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The impact was quickly felt domestically. Between March and April, petrol prices in Dar es Salaam surged by more than 33 percent, rising from Sh2,864 to Sh3,820 per litre, while diesel climbed to Sh3,806 and kerosene to Sh3,684 per litre.
Despite expectations that prices would ease, EWURA’s May 5 fuel price cap increased retail prices further. Petrol in Dar es Salaam rose to Sh4,115 per litre, diesel to Sh4,248, and kerosene to Sh4,677.
In June, motorists received only limited relief after petrol prices were reduced by Sh29 per litre to Sh4,086, while diesel prices increased by Sh85 per litre, despite a government subsidy of Sh534 per litre. Higher fuel costs have continued to drive up transport fares and the prices of goods and services across the country.
The government’s latest assurances have, however, been met with scepticism from opposition parties, which argue that Tanzanians have yet to benefit from falling international oil prices.
In its analysis of the 2026/27 national budget released on June 23, the opposition party ACT Wazalendo argued that although global factors contributed to higher fuel prices, there were also serious concerns surrounding Tanzania’s fuel import arrangements.
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The party claimed that changes to the country’s bulk procurement system had benefited a small group of individuals while ordinary citizens continued to bear the burden of rising fuel costs.
Earlier this year, the government directed the Tanzania Petroleum Development Corporation (TPDC) to temporarily take over bulk fuel imports between May and July 2026 under emergency powers provided by the Petroleum Act. The measure was intended to stabilize prices and secure fuel supplies amid volatility in global markets.
ACT Wazalendo’s Shadow Prime Minister, Luhaga Mpina, said despite the changes to the procurement system, fuel prices have yet to decline to the extent the public had anticipated.
“The fuel was imported into Tanzania at prices exceeding US$400 per cubic metre,” Mpina said. “What is particularly troubling is that the company contracted by TPDC to procure the fuel also supplies Zambia and the Democratic Republic of the Congo through the Port of Beira, but sold the same product to those markets at nearly US$300 per cubic metre.”
He called for an independent investigation into the procurement process for fuel imports during May and June, urging the government to suspend officials from the Ministry of Energy, TPDC and the Petroleum Bulk Procurement Agency (PBPA) who were involved in the decisions to allow impartial investigations.
CHADEMA Vice-Chairperson John Heche has also demanded greater transparency in the fuel import process, arguing that Tanzanians deserve a full explanation of why domestic prices remain high despite declining international crude oil prices.
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Tanzania relies entirely on imported petroleum products following the closure of its oil refinery in the 1990s. Fuel imports are currently managed through the Bulk Procurement System (BPS), which was introduced to improve supply security and reduce costs through centralized procurement.
Looking ahead, Ndejembi said the government remained optimistic that the easing of global tensions would continue to lower international oil prices, noting that crude had already fallen to around $70 per barrel following the temporary ceasefire.
He added that the government would continue monitoring international markets while pursuing long-term measures to strengthen energy security, including diversifying import sources and accelerating plans to build a domestic oil refinery in Tanga Region.
