Tanzania has reduced fuel prices effective June 1, 2022, following a Tsh100 billion ($43 million) government subsidy announced in May 2022. The Energy and Water Utilities Regulatory Authority (EWURA) reported immediate price cuts for petrol, diesel, and kerosene in major cities.
Retail petrol prices dropped to Tsh2,994 ($1.28) per litre from Tsh3,303 ($1.42), while diesel fell to Tsh3,126 ($1.34) from Tsh3,452 ($1.48). Kerosene prices remained unchanged. In Dar es Salaam, petrol prices decreased by Tsh306 ($0.13) per litre, and diesel by Tsh320 ($0.14). Port cities saw smaller reductions, with Tanga and Mtwara reporting drops of Tsh152 ($0.06) and Tsh282 ($0.12) respectively.
EWURA Director-General Modestus Lumato stated oil companies could set prices within a regulated range, emphasizing competitive pricing while adhering to caps. The subsidy, announced by Energy Minister January Makamba on May 10, 2022, aims to ease fuel costs ahead of the new financial year.
Tanzania is negotiating a three-year loan with the IMF and World Bank to address rising living costs. President Samia Suluhu Hassan’s government requested a Tsh1.1 billion ($473,000) soft loan during talks with IMF Managing Director Kristalina Georgieva in May 2022. An IMF team recently concluded discussions on the loan agreement.
The government suspended a Tsh100 ($0.043) fuel surcharge in February 2022, following its imposition in July 2021. Makamba confirmed the policy shift cost the country over Tsh102 billion ($43.8 million) in lost revenue from reduced fuel tariffs and taxes.
