Fuel Prices in Tanzania: What You Pay at the Pump and Why
Drivers in Tanzania currently pay about $1.557 per litre for petrol, which works out to roughly 4,091 TZS per litre in local currency and around $5.89 per US gallon. Diesel runs a little higher at $1.651 per litre. Globally, Tanzania sits at rank 98 out of 170 countries surveyed — meaning its pump prices are slightly above the world average of $1.484 per litre, despite it being a developing economy in East Africa.
Why Tanzania is more expensive than you might expect
It surprises many people that a lower-income country pays more than the global average. The reason is structural: Tanzania imports virtually all of its refined fuel. It is not a significant crude-oil producer, so it is fully exposed to international product prices, shipping and freight costs into the port of Dar es Salaam, and the strength of the US dollar — the currency in which oil cargoes are priced.
The Tanzanian shilling (TZS) has trended weaker against the dollar over recent years, and a depreciating currency mechanically raises the local-currency cost of every imported barrel. When you see prices quoted near 4,091 TZS per litre, a large chunk of that figure reflects the exchange rate rather than the underlying global oil price.
Taxes, the regulator, and bulk procurement
A substantial share of the pump price is tax and levy. Tanzania applies excise duties, a fuel levy that funds road maintenance, VAT on some components, and various petroleum-sector charges. On top of that, the Energy and Water Utilities Regulatory Authority (EWURA) publishes maximum indicative pump prices each month, recalculated from world market data and the prevailing exchange rate. This is why prices in Tanzania move in monthly steps rather than fluctuating daily.
To soften import costs, Tanzania uses a Bulk Procurement System (BPS) that aggregates national fuel demand into single competitive tenders, helping to lower the landed price. Unlike some neighbours, Tanzania does not run a large permanent consumer fuel subsidy, so the regulated price tracks real import economics fairly closely — keeping it near or just above the world average.
Petrol versus diesel
Diesel costing more than petrol (per litre) is notable, since in many countries diesel is cheaper. Strong demand from heavy transport, agriculture, mining haulage, and backup generators keeps diesel tight in the East African market, and the regulator's monthly formula reflects that. For freight operators and farmers, that $1.651-per-litre diesel price is a direct input cost that feeds through into the price of goods nationwide.
How Tanzania compares
Ranking 98th of 170, Tanzania lands in the middle of the global pack. It is cheaper than many small import-dependent islands like Dominica, but pricier than several landlocked or southern African economies. For African context, it is worth comparing with neighbours and peers such as Swaziland and Lesotho, which face their own import-and-transport cost structures. You can browse the full table of world fuel prices to see exactly where Tanzania falls. Even some European economies, like North Macedonia, sit close to Tanzania's level once taxes are factored in.
FAQ
How much does petrol cost in Tanzania right now?
Petrol is about $1.557 per litre, equivalent to roughly 4,091 TZS per litre or around $5.89 per US gallon. Diesel is slightly higher at $1.651 per litre. Prices are reviewed monthly by the regulator, EWURA.
Why is fuel in Tanzania more expensive than the world average?
Tanzania imports nearly all its refined fuel, so it pays international product prices plus freight, port costs, and a range of taxes and levies. A weaker shilling against the US dollar also pushes the local-currency price up, leaving it just above the $1.484 global average.
Does Tanzania subsidise fuel?
Tanzania does not run a large permanent consumer fuel subsidy. Instead, it sets regulated monthly maximum prices and uses a Bulk Procurement System to negotiate lower import costs, so pump prices broadly reflect real import economics.