Transport stakeholders call for review of fuel levies as govt increases bus fares

The new fares will take effect after 14 days since the release of the announcement, the regulator stated.

The regulator stated that the revised fare structure was introduced to reflect current economic realities while maintaining fairness for passengers. Under the proposed structure, commuter buses commonly known as daladala saw the minimum fare for trips of up to 10 kilometres rise from Sh600 to Sh700. Fares increase progressively with distance, reaching about Sh1,500 for journeys between 36 and 40 kilometres.

For long-distance buses, fares are calculated per kilometre depending on road type and service level. Ordinary buses charge about Sh57.93 per kilometre on tarmac roads and Sh66.62 on gravel, while semi-luxury services attract higher rates.

That means, for example, an ordinary bus travelling 626 kilometres between Dar es Salaam and Arusha, which is now costing Sh30,000 per passenger, will cost Sh36,264.18 on tarmac road when the new fares come into effect. For a semi luxury bus travelling the same distance, using the same tarmac road, it will now cost Sh46.436.68 instead of Sh42,000 charged currently.

Ride-hailing taxis now operate within regulated ranges, with trips of up to one kilometre costing between Sh4,000 and Sh5,000, and per-kilometre charges ranging from Sh1,100 to Sh1,300, alongside additional fees such as waiting charges and commissions.

Despite the increases, students remain protected under a flat fare of Sh200 regardless of distance, when using commuter buses. The adjustments come amid a sharp rise in fuel prices following revised cap prices.

On April 1, 2026, the Energy and Water Utilities Regulatory Authority (Ewura) announced new prices of the petroleum products, with petrol rising to Sh3,820 per litre from Sh2,864 in March, a 33.4 percent increase. Diesel increased to Sh3,806 from Sh2,858, while kerosene climbed to Sh3,684 from Sh2,932.

The surge is linked to global supply disruptions associated with ongoing geopolitical tensions affecting key oil infrastructure and shipping routes, including the Strait of Hormuz. As a result, global crude prices have exceeded $100 per barrel.

In 2023, Latra revised the bus fares across the country, with short trips that previously cost around Sh500 rose to about Sh600 while long-distance travel became more expensive with trips such as Dar es Salaam to Arusha increased from around Sh36,000 to about Sh42,000 for semi luxury buses.

TABOA secretary general, Priscus John, said the volatility of fuel prices makes it difficult to assess the situation conclusively. He noted that costs for fuel, engine oil, and other vehicle inputs continue to rise despite temporary relief.

He urged the government to look beyond fuel prices alone and consider related sectors during this period. John also called for a review of levy structures, arguing that percentage-based charges have become more burdensome as global prices rise.

“Previously, levies were applied when global fuel prices were much lower. Now, with higher base prices, the same percentage results in significantly higher charges,” he said.

Mr John proposed maintaining levy calculations based on earlier, lower price benchmarks rather than adjusting them upward with global price increases, arguing that temporary global shocks should not dictate long-term tax structures.

Dar es Salaam Commuter Buses Owners Association (Darcoboa) acting secretary-general Shifaya Lema declined to comment in detail.

Tanzania Small Truck Owners and Operators Association (Tamstoa) chairman Chuki Shabani said operators have more flexibility due to the open-market nature of their business. He explained that rising fuel costs are typically passed on to customers, noting that transport charges for regional routes can increase significantly when fuel prices rise.

Mr Shabani added that the impact of higher fuel prices extends beyond the transport sector, affecting all citizens, including private vehicle owners. Latra Consumer Consultative Council Executive Secretary Daud Daudi said the fares were reviewed following an increase in fuel costs.

“While operators requested a 100 percent rise, analysis shows fuel costs have only increased by 33.3 percent, making the request excessive. This adjustment ensures fairness while sharing the burden across stakeholders,” he said.

“The decision reflects a win-win outcome while protecting consumers from steep fare increases. It also recognises shared energy use among institutions such as UDART and MOFAT, reducing inequitable cost pressures for consumers,” he added.