Fuel prices drop in July as Ewura unveils new cap rates

Dar es Salaam. Motorists in Tanzania will pay slightly less for fuel this month after the Energy and Water Utilities Regulatory Authority (Ewura) announced new cap prices effective today, July 1, 2025.

The authority said the early announcement of fuel prices was meant to align with the new finance act that took effect on July 1.

In its latest pricing guide, Ewura said the retail price of petrol in Dar es Salaam has dropped to Sh2,877 per litre, down from Sh2,885 in June.

Diesel prices have also fallen from Sh2,826 to Sh2,767 per litre, while kerosene has seen the biggest decline, dropping from Sh2,877 to Sh2,629.

At Tanga Port, petrol will now retail at Sh2,938 per litre, a slight decrease from Sh2,946 last month. Diesel there is selling for Sh2,828, down from Sh2,887, while kerosene prices have declined to Sh2,690 from Sh2,938.

Meanwhile, prices at Mtwara Port remain the highest among the three ports, with petrol retailing at Sh2,969 per litre, diesel at Sh2,859, and kerosene at Sh2,722.

EWURA attributed the latest price movements to fluctuations in global oil markets. According to the authority, import costs at Dar es Salaam Port rose in June by an average of 27.98 percent for petrol and 8.04 percent for diesel, but fell by 5.64 percent for kerosene. There were no changes in import costs for Tanga and Mtwara ports.

The new cap prices also reflect rising global trends, with Free On Board (FOB) prices increasing by 6.8 percent for petrol, 9.3 percent for diesel, and 8.1 percent for kerosene in the Arabian Gulf market, where Tanzania sources most of its refined fuel products.

Despite these global increases, the shilling’s recent strengthening against major currencies helped offset some of the impact on local pump prices.

Ewura reminded fuel traders and consumers to observe the set cap prices in their respective regions. The regulator emphasized that under the Petroleum Act of 2015, fuel prices are largely driven by market forces, but Ewura will continue to promote competition and transparency by publishing pricing information regularly.

“Oil marketing companies are free to set competitive prices as long as they remain within the established price caps and do not fall below the legally permitted minimum,” the authority said.

All fuel stations are required to display fuel prices clearly on boards visible to customers, showing prices, discounts, and any promotions available.

“Consumers are encouraged to shop around for better prices and services where options exist,” EWURA advised. “It is an offence for petrol stations to operate without visible price boards, and strict penalties will apply to those who fail to comply.”

The new price adjustments come at a time when Tanzanians are grappling with broader cost-of-living pressures, and many will be watching how the latest changes affect transport and commodity prices in the weeks ahead.