Tanzania fuel prices hit record highs as Iran war takes toll
Motorists and other fuel consumers in Tanzania will pay around Tsh1,000 (Ksh50) more for a litre of petrol after the energy regulator revised cap prices for April 2026 in response to rising global prices precipitated by the US-Israeli war on Iran.
The sharp increase underscores how global geopolitical shocks are quickly feeding into domestic energy costs, placing fresh pressure on households and businesses already grappling with a high cost of living.
According to a public notice issued on Wednesday by the Energy and Water Utilities Regulatory Authority (Ewura), the latest adjustments reflect sustained pressure in global oil markets, compounded by exchange rate volatility.
The latest review shows that a litre of petrol will retail at Tsh3,820 (Ksh191) in April 2026, up from Tsh2,864 (Ksh143.41) in March—an increase of 33.4 percent. Diesel has risen to Tsh3,806 (Ksh190) per litre from Tsh2,858 (Ksh143), while kerosene now costs Tsh3,684 (Ksh184), up from Tsh2,932 (Ksh146.82)
Beyond the headline figures, the adjustments signal broader inflationary risks, particularly in transport and food supply chains that heavily depend on fuel. With petrol and diesel prices rising almost in tandem, the cost of moving goods and people is expected to increase, potentially triggering a ripple effect across key sectors of the economy.
Notably, this is the first time Tanzania has recorded such elevated fuel prices since the 2022 spike linked to the Russia-Ukraine War, when global oil prices surged past $120 per barrel and pushed domestic pump prices to above Tsh3,400(Ksh170) per litre. That episode demonstrated how vulnerable the country remains to external shocks in energy markets.
In response at the time, the government under President Samia Suluhu Hassan introduced fuel subsidies exceeding Tsh100 billion (Ksh5 billion), helping to cushion consumers and stabilise prices. The absence of a similar subsidy announcement so far suggests a shift toward more targeted or market-based interventions.
The situation has been exacerbated by the ongoing conflict involving the US and Israel against Iran, which began on February 28, 2026. The crisis has disrupted supply chains at a time when global demand remains firm, tightening the balance between supply and availability.
“Attacks on key oil infrastructure—including fields, storage facilities and refineries—alongside Iran’s closure of the Strait of Hormuz, a critical route that handles about 20 percent of global oil shipments, have significantly disrupted supply from the Middle East, where Tanzania sources much of its fuel,” read part of the public notice.
The disruption has also driven up shipping costs due to a shortage of cargo vessels and increased insurance premiums for oil tankers, further pushing up import costs. These additional charges are ultimately passed on to consumers through higher pump prices.
Ewura further noted that the Free on Board (FOB) reference prices—sourced from the Arab Gulf market—rose sharply in April 2026, with petrol increasing by 69.98 per cent, diesel by 114.46 percent, and kerosene by 120.81 percent, underscoring the magnitude of global supply shocks.
Globally, crude oil prices have climbed to above $100 per barrel, with Brent crude currently trading at around $105–$108 per barrel amid the crisis, a level that historically translates into elevated domestic fuel prices for import-dependent economies like Tanzania.
In response to this situation last week, the government has moved to contain further escalation through supply-side intervention. Last week, it assigned the Tanzania Petroleum Development Corporation (TPDC) to import and distribute petroleum products between May and July, leveraging bulk procurement to secure more favourable prices.
Energy Permanent Secretary James Mataragio said the intervention follows a market assessment that found TPDC could source fuel at lower cost compared to suppliers engaged through the Petroleum Bulk Procurement Agency.
“We have sufficient fuel stocks to last three months, from May to July, and TPDC will oversee supply during this period to ensure price stability,” Dr Mataragio said.
He added that Tanzania currently holds adequate reserves across petrol, diesel and aviation fuel, supported by incoming shipments expected to extend supply to at least 90 days—an assurance aimed at maintaining supply.
Ksh1 = Tsh19.97
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