Fuel prices in Tanzania rise despite subsidies

Tanzanians are bracing for tougher times ahead as fuel prices across the country rose with effect from Wednesday, despite government subsidies.

According to the Energy and Water Utilities Regulatory Authority (Ewura), prices for petrol, diesel and kerosene have risen to levels never recorded before in the local market.

As from July 6, 2022, a litre of petrol now costs Tsh3,220 ($1.38) in Dar es Salaam up from Tsh2,994 ($1.28) last month, while that of diesel will now be Tsh3,143 ($1.35) from Tsh3,131 ($1.34), the regulator said in a statement.

Retail price of kerosene will be Tsh3,442 ($1.48) a litre up from Tsh3,299 ($1.41) last month.

In some places like Kagera, a litre of petrol costs up to Tsh3,435 ($1.47).

However, the prices would have been much higher without the government’s Tsh100 billion ($42 million) monthly subsidy that began June.

“Oil marketing companies are free to sell their products at a price that gives them a competitive advantage provided that such price does not exceed the price cap,” Ewura said in a statement signed by its director general Modestus Lumato.