Rising fuel competition boosts supply stability

TANZANIA: TANZANIA’S petroleum sector is becoming increasingly competitive, a trend that is helping to protect consumers and ensure stable fuel supply, according to the Energy and Water Utilities Regulatory Authority (Ewura).

The latest Ewura Petroleum Sub-Sector Performance Report shows that while Puma Energy has maintained its position as the largest oil marketing company (OMC), locally owned Camel Oil has emerged as the fastestgrowing player, significantly increasing its market share in the 2024/25 financial year.

According to the report, the five largest OMCs control 48.7 per cent of the market, leaving more than half to other companies an indication of a broad and competitive playing field.

Puma Energy leads with a 15.5 per cent market share, followed by Camel Oil at 11.4 per cent, Mansoor Industries Limited (MOIL) at 10 per cent, Oilcom Tanzania at 6.4 per cent and Mount Meru Petroleum at 5.3 per cent.

The most notable shift was recorded by Camel Oil, which climbed from eighth position in 2023/24 to second place in 2024/25. Its market share rose sharply from 5.54 per cent to 11.4 per cent, marking the strongest growth among major players. In contrast, some established firms lost ground.

MOIL dropped from second to third position after its share declined from 11.12 per cent to 10 per cent. Acer Petroleum fell from fourth to eighth position, while Oryx Oil slipped to 11th place following a significant drop in its market share.

Mount Meru Petroleum, however, posted modest gains to secure fifth position.

Ewura Director of Petroleum, Gerald Maganga, said the changes reflect a vibrant and active sector with many participants.

“This shows the petroleum sector is competitive, with a number of players actively participating,” he said.

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He noted that strong competition reduces the risk of fuel shortages, as the presence of multiple suppliers ensures continuity even if one company exits the market.

Mr Maganga added that competition plays a key role in protecting consumers by preventing any single company from dominating the market.

Ewura said a company’s market share is influenced by factors such as the number of service stations it operates, customer loyalty, quality of services and its ability to secure supply contracts with large consumers in sectors such as mining, manufacturing and agriculture.

The regulator also noted that the sector allows companies to enter, expand, merge or rebrand, provided they comply with legal and regulatory requirements.

However, it cautioned against practices that undermine fair competition, including compromising fuel quality, exceeding regulated prices and violating health, safety and environmental standards.

The growing presence of locally owned firms continues to reshape the competitive landscape, signalling improved service delivery and stronger fuel supply across the country.