Dar es Salaam. The government has moved to stabilise fuel prices by assigning the state-run Tanzania Petroleum Development Corporation (TPDC) to import and distribute petroleum products between May and July, leveraging bulk procurement to secure more favourable prices.
Energy ministry Permanent Secretary Dr Jamea Mataragio said the intervention follows a market assessment that found the TPDC could source fuel at lower cost than suppliers engaged through the Petroleum Bulk Procurement Agency (PBPA).
The decision comes against the backdrop of rising global oil prices, which have more than doubled in recent months—from between $50 and $60 per barrel in February to about $114 currently—raising concerns over domestic price pressures.
“We have sufficient fuel stocks to last three months, from May to July, and TPDC will oversee supply during this period to ensure price stability,” Dr Mataragio told journalists.
He said Tanzania currently holds adequate reserves across petrol, diesel and aviation fuel, supplemented by incoming shipments that will extend supply to at least 90 days.
The intervention mirrors earlier government responses to global oil shocks.
In 2021, authorities assigned TPDC to import fuel to cushion consumers from price volatility linked to international market disruptions.
Dr Mataragio said TPDC secured imports at around $100 per barrel—significantly lower than offers obtained through PBPA—after negotiating directly with producers and committing to larger volumes under longer-term contracts.
“Bulk purchasing allows us to obtain better prices and guarantee supply. Smaller consignments tend to attract higher costs,” he said.
He added that the government will enforce strict oversight to prevent hoarding and speculative practices that could create artificial shortages.
Regulators and security agencies have also been tasked with ensuring that all imported fuel reaches designated depots and retail outlets.
Despite the stabilisation measures, Dr Mataragio cautioned that domestic prices could still edge upwards in line with global trends, particularly amid ongoing geopolitical tensions in the Middle East affecting supply chains.
“The expectation is that prices may rise, but they will remain manageable,” he said.
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