Fuel consumers in Tanzania are starting the new year with optimism as fuel prices continue to decline for the fifth consecutive month.
The Energy and Water Utilities Regulatory Authority (EWURA) announced on January 1 that petrol, diesel, and kerosene prices have significantly dropped nationwide attributed to the strengthened Tanzanian shilling against other currencies.
For fuel received at the Dar es Salaam port, petrol prices decreased by TZS 105 per liter, diesel by TZS 135, and kerosene by TZS 15 compared to December 2024.
In Tanga, petrol prices fell by TZS 105 per liter, diesel by TZS 136, and kerosene by TZS 135. Meanwhile, Mtwara recorded a drop of TZS 42 per liter for petrol, TZS 129 for diesel, and TZS 157 for kerosene.
"This continued decline is largely attributed to the strengthening of the Tanzanian shilling, which has appreciated by 11.27% against foreign currencies used for fuel imports," EWURA says in a monthly price-cap report.
The stronger exchange rate has helped cushion the effects of global oil price fluctuations, ensuring local consumers benefit from reduced pump prices.
The downward trend in fuel prices has been consistent since September 2024.
Back then, petrol in Dar es Salaam was priced at TZS 3,198 per liter, diesel at TZS 2,986, and kerosene at TZS 2,940.
By December, prices had dropped further, culminating in January 2025’s rates of TZS 2,843 for petrol, TZS 2,720 for diesel, and TZS 2,727 for kerosene.
This represents a total reduction of TZS 355 per liter for petrol, TZS 266 for diesel, and TZS 213 for kerosene since September.
The falling fuel prices are expected to have far-reaching economic benefits. Lower transportation costs will reduce the cost of goods and services, bringing much-needed relief to households.
Key sectors such as manufacturing and agriculture, which rely heavily on diesel, will benefit from lower operational expenses.
Additionally, businesses are likely to experience improved profitability, which could encourage further investment and stimulate economic activity.
The government’s proactive measures to stabilize the exchange rate and closely monitor global oil market trends have played a significant role in this positive development.
If these favorable conditions persist, Tanzanians can look forward to sustained relief at the pump, contributing to economic stability and increased consumer confidence in the months ahead.