Tanzania is facing a sharp rise in fuel prices, triggering widespread economic strain as global oil supply disruptions continue to ripple across international markets.
The surge in energy costs has significantly impacted daily life, with transport fares and the prices of essential goods climbing steeply. Many residents say they are now spending nearly double on basic needs, placing increased pressure on households and small businesses.
Local commuter Ester William Lazaro described the situation as increasingly difficult, noting that transport costs within town have risen sharply. She also pointed to a surge in food prices, with everyday items such as vegetables becoming far more expensive in recent weeks.
Tanzania consumes about 15 million litres of fuel daily, including petrol, diesel, and kerosene, with nearly all supplies imported. This heavy reliance on imports leaves the country vulnerable to fluctuations in global oil prices and supply disruptions.
According to Deogratius Ndejembi, petrol prices rose by 69 percent between February and March 2026, while diesel increased by 104 percent. Kerosene and jet fuel prices also climbed by over 100 percent within the same period.
Economic analysts warn that without urgent intervention, the rising fuel costs could further worsen inflation and reduce purchasing power. Kelvin Mouris called for policy reforms, including a review of fuel taxes and accelerated investment in alternative energy sources such as natural gas and electricity-powered transport.
Tanzania holds over 57 trillion cubic feet of proven natural gas reserves, but limited infrastructure and high investment costs have slowed its development and utilisation.
In response to the crisis, the government has introduced measures to stabilise supply, including supporting the Tanzania Petroleum Development Corporation to maintain fuel reserves sufficient for at least three months.
The ongoing global disruption has been linked to tensions affecting the Strait of Hormuz, a critical channel through which about one-fifth of the world’s oil supply passes. The situation has heightened concerns over prolonged energy instability and its broader economic consequences.
