Dar es Salaam. Motorists across Tanzania are facing rising fuel prices as the Tanzanian Shilling continues to weaken, significantly impacting the cost of petrol.
The decline in the local currency has been notable, especially against the US dollar, which is crucial for international trade. Recently, the Shilling fell from an average exchange rate of Sh2,394.76 per dollar at the end of 2024 to Sh2,486.64 by the end of January 2025.
As of February, the exchange rate dipped to Sh2,581.29, and by yesterday, it had further depreciated to Sh2,657.01 against the dollar. According to the Energy and Water Utilities Regulatory Authority (Ewura), this depreciation has counteracted the advantages of decreasing Free On Board (FoB) prices for imported fuel, culminating in higher local fuel prices.
Ewura’s latest report analyzed Arab Gulf market prices and showed that for April 2025, petrol prices dropped by 6.92 percent, diesel fell by 6.57 percent, and kerosene decreased by 7.82 percent. Despite this, the local market has not reflected these reductions. Ewura noted that in April, petrol prices in Dar es Salaam rose to Sh3,037 per litre, compared to Sh2,996 in March. Diesel increased to Sh2,936 per litre from Sh2,885, while kerosene saw a slight hike to Sh3,053 per litre from Sh3,036.
In Tanga, where import costs remain stable, petrol now costs Sh3,083 per litre, rising from Sh3,042, and diesel prices climbed to Sh2,982 from Sh2,932. Kerosene prices in Tanga have seen a substantial increase, now priced at Sh3,099, up from Sh2,958.
Fuel prices in Mtwara Port have also surged, with petrol now costing Sh3,109 per litre, up from Sh3,069 last month, and diesel rising to Sh3,008 from Sh2,958. Kerosene is now sold at Sh3,125 per litre, compared to Sh3,108 in March.
This marks three consecutive months of rising fuel prices in Tanzania, largely attributed to the Shilling’s depreciation. In March, fuel prices had already increased by substantial percentages; petrol rose by 6.27 percent, diesel by 6.73 percent, and kerosene saw a staggering 12.02 percent increase.
Ewura has emphasized the importance of adhering to the 2022 Fuel Pricing Regulations to ensure price stability. Fuel retailers are mandated to display their prices clearly, including any discounts or promotions.
“Consumers are encouraged to select filling stations offering competitive rates and quality service,” the statement from Ewura indicated. Compliance with pricing regulations is crucial; failure to do so may result in penalties. Additionally, retailers must provide Electronic Fiscal Pump Printer (EFPP) receipts to customers, documenting critical details of the fuel purchase.
“This practice ensures transparency in pricing and the proper accounting of government taxes on petroleum sales,” Ewura stated.
