Tanzania’s fuel prices surge as Kenyans seek cheaper alternatives

Tanzania is experiencing a 17% rise in petrol prices, leading drivers to spend more money. The situation is attributed to increased costs of importing gasoline and higher price caps on petroleum products, as reported by the Energy and Water Utilities Regulatory Authority (Ewura), caused by the scarcity of US dollars.

In August 2023, the prices of retail gasoline in Tanzania have increased, with fuel imported through the port of Dar es Salaam being transacted at Sh3,199 per liter compared to Sh2,736 per liter last month. Diesel prices have also gone up from Sh2,544 to Sh2,935 per liter, while kerosene prices have slightly fallen from Sh2,829 to Sh2,668 per liter, providing some relief.

Dr. James Mwainyekule, the Director General of Ewura, attributed these changes to challenges in the availability of US Dollars, fluctuations in the fuel levy, global petroleum product prices, and importation premiums. The new cap prices came into effect on August 2, 2023. Petrol imported through the Mtwara port now costs Sh3,271, up from Sh2,809 per liter in July, while kerosene costs Sh2,714 per liter, down from Sh2,901, and diesel costs Sh3,008, up from Sh3,000.

Petrol imported through Tanga port would cost Sh3, 245 per liter, up from Sh2, 724 per liter in July. Kerosene will cost Sh2,740 per liter instead of Sh2,875, while diesel will cost Sh2,981 instead of Sh2,760.

This new development comes 2 weeks after it was reported that Kenyans have been crossing their Tanzanian border to get cheaper petrol. According to statistics from GlobalPetrolPrices.com, as of the time of the report, a liter of gasoline costs $1.119 in Tanzania compared to Kenya’s $1.398, which is the highest price in the East African region.

A liter of diesel costs $1.04 in Tanzania, compared to $1.287 in Kenya, the highest price in the area. This indicates that automobiles and bodaboda riders from Kenya may save $0.247 by refilling in Tanzania.

Currently, petrol prices in Kenya go for $1.376 per liter, and petrol prices in Kenya go for 1.303 per liter.