Dar es Salaam. Tanzanians will pay less for petrol, diesel and kerosene from Wednesday, July 1, 2026 after the regulator lowered monthly fuel price caps in response to falling international oil prices.
The Energy and Water Utilities Regulatory Authority (EWURA) announced that the maximum retail prices of petroleum products have been reduced following an improvement in global supply conditions.
Under the new price schedule, petrol prices have fallen by Sh96 per litre, diesel by Sh151 per litre and kerosene by Sh242 per litre compared with the June price caps.
The latest reductions reverse part of the sharp increases recorded in recent months after the conflict involving the United States, Israel and Iran disrupted oil supplies from the Middle East and pushed up shipping and insurance costs.
In June, motorists in Dar es Salaam were paying a maximum of Sh4,086 per litre for petrol, Sh4,333 for diesel and Sh4,685 for kerosene, among the highest fuel prices recorded in recent years.
Those prices came after months of sustained increases linked to the global energy crisis.
According to EWURA, the latest decline reflects lower prices on the international petroleum market.
The regulator said the improvement follows recent developments in the Middle East, including an agreement between the United States and Iran over the conflict in the region and the reopening of the Strait of Hormuz to oil tankers.
The restoration of shipping through one of the world’s most important oil transit routes has eased supply concerns and reduced transportation bottlenecks, contributing to lower international fuel prices.
Despite the reductions, EWURA cautioned that average global petroleum prices remain above the levels seen before the conflict erupted on February 28, 2026.
This means domestic fuel prices, although lower than in June, are still elevated compared with those prevailing before the crisis.
The regulator’s announcement confirms an earlier indication by the government that domestic fuel prices would begin falling as international market conditions improved.
Fuel prices are reviewed every month under Tanzania’s pricing formula, which takes into account international refined petroleum prices, freight charges, exchange rates, taxes and other statutory levies.
The monthly cap prices set by EWURA represent the maximum amounts that retailers are allowed to charge consumers. Dealers may sell below the cap but are prohibited from exceeding it.
The latest reductions are expected to provide some relief for motorists, transport operators and businesses that rely heavily on diesel and petrol.
However, the decline is relatively modest compared with the steep increases experienced earlier this year when the conflict severely disrupted global oil supplies.
The government has previously introduced measures, including diesel subsidies, to cushion consumers and protect key sectors of the economy from the impact of soaring fuel costs.
