Tanzania introduces 259/- fuel subsidy per litre to cushion consumers against rising oil price

DAR ES SALAAM: THE Tanzanian government has introduced a fuel subsidy of 259/- per litre of diesel to cushion consumers against rising global oil prices driven largely by geopolitical tensions.

According to new May 2026 prices released by the Energy and Water Utilities Regulatory Authority (EWURA), fuel costs in Dar es Salaam continue to climb, with petrol retailing at 4,115/- per litre, diesel at 4,248/- and kerosene at 4,677/-.

The diesel subsidy is aimed at easing production and transport costs as the government moves to stabilise supply amid global market pressures.

The price surge is largely linked to tensions in the Middle East involving Iran, Israel and the United States, which have pushed up both fuel and shipping costs worldwide.

ALSO READ: Tanzania finalizes move to allow veteran journalists to return to the job under legal guidelines.

Within East Africa, Tanzania remains among the first countries to announce monthly fuel prices, often serving as a regional benchmark.

Despite the increase, the country still fares relatively better than some of its neighbours. In Kenya, petrol prices exceed 4,300/- per litre, while in Uganda they are nearing 4,500/- in some areas. Rwanda has some of the highest prices in the region, with petrol surpassing 5,200/- per litre.

Energy analysts warn that prices could continue rising due to higher freight, insurance and supply costs linked to ongoing disruptions along key global oil transport routes.