Tanzania Drops Fuel Prices in August as Kenyans Pay Higher Prices

Tanzania Drops Fuel Prices in August as Kenyans Pay Higher Prices

  • Tanzania has lowered fuel prices for the third consecutive month, with the EWURA attributing the drop to falling global oil prices, a stronger shilling, and reduced shipping costs
  • Petrol in Dar es Salaam now retails at KSh 147.84 per litre, with diesel at KSh 144.40, and kerosene at KSh 143.94., offering relief to Tanzanian consumers and businesses
  • Kenya increased fuel prices sharply, with EPRA raising petrol by KSh 8.99, diesel by KSh 8.67, and kerosene by KSh 9.65 per litre, effective July 15, 2025

Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.

Tanzanian drivers have something to smile about this August as fuel prices continue to fall, marking the third consecutive month of relief at the pump.

Fuel prices.
Tanzania's president Samia Suluhu (l), Kenya's William Ruto during past engagements and a fuel pump used for illustration. Photo: William Ruto/Samia Suluhu/TravelCouples.
Source: UGC

The Energy and Water Utilities Regulatory Authority (EWURA) has announced new cap prices for petrol, diesel, and kerosene, effective from Wednesday, August 6.

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EWURA said the price reductions are credited to a mix of global and local economic factors, including a dip in international petroleum prices, improved exchange rates, and decreased shipping premiums.

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What are the fuel prices in Dar es Salaam?

In Dar es Salaam, petrol now sells at KSh 147.84 per litre, diesel at KSh 144.40, and kerosene at KSh 143.94.

These reductions are expected to ease transport costs and lower operating expenses for businesses across the country.

Elsewhere in Tanzania, fuel prices have also dropped, albeit at varying rates. In Tanga, petrol is retailing at KSh 151.01, diesel at KSh 147.63, and kerosene at KSh 147.11.

Wholesale prices have also been revised downwards. In Dar es Salaam, petrol is now wholesaling at KSh 140.76 per litre, diesel at KSh 137.16, and kerosene at KSh 136.70.

Why did fuel prices drop in Tanzania?

According to EWURA, the main factor behind the latest reductions is a 2.3% drop in Free-On-Board (FOB) prices for petrol from the Arab Gulf, which supplies the bulk of Tanzania’s refined fuel.

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While global diesel and kerosene prices have seen slight increases of 5.5% and 3.7%, respectively, their impact has been offset by a stronger Tanzanian shilling and a sharp drop in port premiums.

Despite the current trend, EWURA warned that international oil markets remain volatile. Future pricing may be influenced by global demand shifts, geopolitical tensions, and currency fluctuations.

What are the fuel prices in Kenya?

Meanwhile, Kenya's Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices across Kenya.

EPRA raised the cost of super petrol by KSh 8.99, diesel by KSh 8.67, and kerosene by KSh 9.65 per litre effective Tuesday, July 15, 2025.

In Nairobi, the price of petrol rose to KSh 186.31, KSh 171.58 for diesel, and KSh 156.58 for kerosene.

EPRA defended its decision to raise fuel prices in July 2025, following public outcry over the hike.

The authority attributed the increases to a surge in international oil prices in June, citing a 6.72% rise in petrol, 9.33% in diesel, and 8.1% in kerosene based on Platts pricing benchmarks.

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However, Kiharu MP Ndindi Nyoro challenged the explanation, accusing the government of using misleading data.

He also revealed that the KSh 7 per litre fuel levy was used to secure a KSh 175 billion off-book loan.

EPRA Director General Daniel Kiptoo’s rebuttal that the fuel levy securitisation was unrelated to the latest price adjustment.

Comparatively, Kenya’s fuel prices are the highest in the region.

The disparity intensifies scrutiny on Kenya’s fuel pricing model and tax policies, deepening frustrations among consumers already grappling with a high cost of living.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke

Authors:
Elijah Ntongai avatar

Elijah Ntongai (Business editor) Elijah Ntongai is an MCK accredited journalist and an editor at TUKO.co.ke's business desk, covering stories on money, the economy, technology, and other business-angled stories. Ntongai graduated from Moi University with a Bachelor's in Linguistics, Media and Communication. Ntongai is trained and certified under the Google News Initiative and Reuters Digital Journalism. For any correspondence, contact Ntongai at elijah.ntongai@tuko.co.ke.

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