Dar es Salaam. Tanzanians are set to receive relief at the pump after fuel prices declined for July, with petrol dropping below Sh4,000 per litre for the first time in three months as global oil prices begin easing following tensions in the Middle East.
The latest price adjustments come after months of sharp increases triggered by the conflict involving the United States, Israel and Iran, which disrupted global energy markets and pushed fuel costs higher across many countries, including Tanzania.
According to new fuel price caps announced by the Energy and Water Utilities Regulatory Authority (Ewura), effective from Wednesday, July 1, 2026, retail prices for petrol, diesel and kerosene have all declined across major ports of entry.
For fuel imported through the Dar es Salaam port, petrol prices have fallen by Sh96 per litre, diesel by Sh151 and kerosene by Sh242.
As a result, motorists in Dar es Salaam will now buy petrol at Sh3,990 per litre, down from Sh4,086 in June. Diesel prices have dropped to Sh4,182 from Sh4,333, while kerosene now costs Sh4,443 per litre, down from Sh4,685.
Consumers using fuel imported through Tanga port will purchase petrol at Sh4,051 per litre, down from Sh4,157, while diesel prices have declined to Sh4,243 from Sh4,404. Kerosene prices have also dropped to Sh4,504 from Sh4,756.
Meanwhile, residents of Mtwara and neighbouring regions supplied through southern Tanzania will buy petrol at Sh4,083 per litre, down from Sh4,193. Diesel has fallen to Sh4,275 from Sh4,440, while kerosene prices have also recorded a significant decline.
The reduction follows a period of sustained price increases that began earlier this year. Fuel prices, which influence transport, manufacturing and logistics costs, rose sharply after tensions escalated in the Middle East and concerns emerged over the security of shipping routes around the Strait of Hormuz.
Petrol prices in Tanzania climbed from Sh2,864 per litre in March to around Sh4,115 in May. Diesel rose from Sh2,858 to Sh4,248 during the same period, while kerosene increased from Sh2,932 to Sh4,677 per litre.
Analysts attribute the latest decline to improving geopolitical conditions and renewed diplomatic efforts aimed at easing tensions in the Middle East. The reopening of critical shipping routes has also helped stabilise global oil supply chains.
Speaking in Parliament in Dodoma on June 26, Energy Minister Deogratius Ndejembi assured Tanzanians that the government was working to ensure stable fuel supplies while seeking ways to ease prices.
Despite the latest reductions, current prices remain above levels recorded before the escalation of the conflict earlier this year.
Ewura has urged fuel retailers to maintain competitive pricing while ensuring that prices do not exceed approved caps. It also directed filling stations to prominently display prices and issue electronic receipts to customers as proof of purchase and to improve accountability in the sector.
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