EWURA: Fuel imports up by 10.9pc in 2023/24

TANZANIA: TANZANIA imported over 4.3 billion litres of petroleum products for local consumption in the 2023/24 financial year- a figure that marks a 10.9 per cent increase compared to the previous year, a new report shows.

This steady rise is a reflection of Tanzania’s expanding economic activity and growing fuel demands across sectors, from transport to industry. More importantly, it points to the efficiency and oversight of the Energy and Water Utilities Regulatory Authority (EWURA), which has been instrumental in managing petroleum supply chains under increasingly complex conditions.

The Mid and Downstream Petroleum Sub-Sector Performance Report for FY 2023/24 published by EWURA anchors a well-coordinated national system behind the headline growth, spearheaded by regulatory frameworks and the Bulk Procurement System (BPS).

In FY 2023/24 alone, 116 BPS contracts were awarded, securing bulk imports of diesel, petrol, kerosene and Jet A-1. Major suppliers such as Addax Energy SA and Sahara Energy Resources led the charge. The system, designed to centralise procurement through competitive international bidding, helped minimise cost fluctuations and ensured a stable supply throughout the year.

“The Authority has remained committed to its role in guaranteeing a stable and secure supply of petroleum products across the country,” said Dr James Andilile Mwainyekule, EWURA’s Director General, in his foreword to the report. He emphasised the agency’s dual mission to regulate and to support development. “This report is not just a performance record , it is a tool for investment planning and a platform for transparency.”

The data shows that Tanzania’s mid and downstream petroleum sub-sector is not only growing, it is maturing. Transit imports, destined for landlocked neighbours such as Zambia, Rwanda and the Democratic Republic of Congo, rose by 13.1 per cent, reinforcing Tanzania’s role as a regional petroleum corridor. Meanwhile, consumption of petroleum products domestically increased to 4.63 billion litres, with the transport sector consuming over 60 per cent of this volume. Industry and agriculture accounted for nearly 29 per cent, while aviation and mining made up the remainder.

Retail infrastructure is expanding in lockstep with demand. As of June 2024, the country recorded 2,597 licensed petroleum retail outlets, up from 2,361 the previous year. Significantly, 480 outlets are now operational in rural areas — a 32.96 per cent increase. These figures reflect a deliberate push to decentralise access to energy and support economic activity beyond the urban core.

“This growth in rural energy access is a signal that we’re not just developing the grid — we’re decentralising prosperity,” said Dr Doto Biteko, Deputy Prime Minister and Minister for Energy, during the April 2025 launch of the sector reports in Dodoma.

He credited the expansion not only to infrastructure investments but also to regulatory policies that reduce barriers for rural operators. “We are seeing real results from strategic reforms and a shared commitment across all levels of government.”

Petroleum storage and transport infrastructure also showed marked improvement. The country now has 23 operational petroleum terminals, with a combined storage capacity of 1.63 million cubic metres, supporting 123 days of local demand. Inland depots provide an additional 70,937 cubic metres, though road tankers remain the dominant mode of delivery due to limited pipeline coverage.

One of the sector’s most strategic assets is the TAZAMA pipeline, a 927-kilometre artery connecting Kigamboni, Dar es Salaam, to Ndola, Zambia.

Responsible for delivering over 70 per cent of Zambia’s diesel supply, the pipeline is slated for expansion from 231,000 to 380,000 cubic metres with new off-take points in key Tanzanian towns such as Morogoro and Mbeya. This planned upgrade is set to boost both domestic and regional fuel resilience.

Pricing, a perennial concern for consumers, was largely stable despite global pressures. Average pump prices in Dar es Salaam during the period were 3,166/- per litre for petrol and 3,128/- for diesel. While these figures reflect a modest increase over the year, the government’s decision to harmonise prices across major ports -Dar es Salaam, Tanga and Mtwara has helped level the national pricing landscape and ease distribution pressures.

Regulatory compliance remained a top priority. EWURA conducted 840 inspections of petroleum facilities, with 79.29 per cent found to be in full compliance with licensing terms and safety standards. While this marked a slight drop from the previous year, it also reflected intensified enforcement and broader monitoring coverage.

The Authority also collected 763 petroleum samples for quality assurance testing, reinforcing its mandate under the Petroleum Act to protect public health and market integrity.

ALSO READ: EWURA’s oversight enhances energy sector

Challenges remain. The report highlights issues such as limited US dollar availability for payments, lack of a Single Receiving Terminal for petroleum products and infrastructure gaps in some regions. Still, the tone of both the data and the leadership is clear progress continues, anchored in sound policy, strategic investments and strong oversight.

“EWURA’s regulatory role is not only about enforcement. It is about building trust in a sector that fuels the economy,” Dr Mwainyekule stated. His words resonate with the broader theme of the report: A sector moving forward, step by step, fuelled not just by petroleum, but by planning, discipline and national ambition.