Dar es Salaam. Tanzanian motorists and businesses will experience a welcome relief at the pump in May after the Energy and Water Utilities Regulatory Authority (EWURA) announced a notable drop in fuel prices across the country, effective from Wednesday, May 7, 2025.
According to the cap prices published by EWURA on Tuesday, both retail and wholesale rates for petrol, diesel, and kerosene have been adjusted downward. The decline reflects a combination of reduced global oil prices, falling import premiums, and a slight improvement in the exchange rate.
In Dar es Salaam, motorists will now pay Sh2,947 per litre for petrol, Sh2,868 for diesel, and Sh 3,053 for kerosene. Tanga’s fuel prices are slightly higher, with petrol retailing at Sh2,994, diesel at Sh2,914, and kerosene at Sh 3,099. Mtwara, meanwhile, recorded the highest rates among the three major ports, with petrol at Sh3,020, diesel at Sh 2,940, and kerosene at Sh 3,125 per litre.
Wholesale prices have also been revised accordingly. In Dar es Salaam, petrol is now priced at Sh 2,816.35 per litre, diesel at Sh 2,736.43, and kerosene at Sh 2,921.56. The wholesale price changes follow similar trends in Tanga and Mtwara.
EWURA said the price cuts are largely the result of a dip in the Free-On-Board (FOB) prices of refined petroleum products on the Arab Gulf market, which acts as the primary reference for Tanzanian imports. FOB prices dropped by 5.22 percent for petrol, 5.21 percent for diesel, and 5.08 percent for kerosene compared to April 2025.
Additionally, import premiums — the logistical and insurance costs associated with shipping fuel — have seen significant reductions. In Dar es Salaam, petrol premiums fell by 22.41 percent and diesel by 4.78 percent. Mtwara recorded an even sharper decline of 34.81 percent for both petrol and diesel. The Tanzanian shilling also strengthened slightly against the US dollar, with a 1.20 percent improvement in the exchange rate further easing the cost of imports.
EWURA has emphasised that the new prices are applicable across all districts and regions in Tanzania Mainland, and it has urged fuel retailers to adhere strictly to the published price caps. Consumers are encouraged to verify pump prices and report any discrepancies.
The regulator expects the price drop to have a positive ripple effect across the economy, particularly in reducing transport and logistics costs. This could, in turn, help stabilise commodity prices and offer some relief to Tanzanians grappling with inflation.
As fuel remains a key input in virtually all sectors of the economy, the lower prices are seen as a timely intervention ahead of mid-year agricultural transport and holiday travel peaks.
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