Tanzanian fuel prices are rising despite the gov’t’s decision to eliminate levy.

Despite the government’s removal of the Tsh100 ($0.043) fuel levy, retail fuel prices in Tanzania have risen.

The levy was repealed in order to protect consumers from rising costs as a result of the Russia-Ukraine conflict.

According to a statement issued by the Ministry of Energy on Monday, the $0.043 surcharge on a litre of petrol, diesel, and kerosene, which had been in effect since July 2021, has been eliminated as the government monitors the international market in light of the conflict in eastern Europe.

However, the Energy and Water Utilities Regulatory Authority (Ewura) announced on Tuesday that starting March 2, motorists in Dar es Salaam will pay Tsh2,540 ($1.10) for a litre of petrol, up from Tsh2,480 ($1.07), while a litre of diesel will cost Tsh2,403 ($1.04), up from Tsh2,338 ($1.01), and a litre of kerosene will cost Tsh2,208 ($

Fuel prices would have been higher if the $0.043 levy had not been repealed, according to Ewura Director-General Godfrey Chibulunje.

“Without the government’s intervention and assistance, the petroleum products imported through Dar es Salaam port prices would have been Tsh2,640 ($1.14) for petrol, Tsh2,503 ($1.08) for a litre of diesel, and Tsh2,308 ($1) for kerosene,” he said.

Petroleum products imported through Tanga port now cost Tsh2,563 ($1.11) per litre of petrol and Tsh2,484 ($1.07) for diesel, whereas at Mtwara, a litre of petrol costs Tsh2,577 ($1.11) and diesel costs Tsh2,530 ($1.09).

Oil prices have been rising on the global market as there is growing concern about a disruption in supply as a result of Russia’s invasion of Ukraine.