Tanzanian President Samia Suluhu Hassan on Tuesday flagged off a new oil storage project at the port of Dar es Salaam aimed at boosting the country’s fuel reserves amid fears of rising global oil prices following supply disruptions linked to the US/Israel-Iran conflict.

Once completed, the facility will raise the port’s total oil reception capacity by 35.9 percent, from 1.05 million to 1.43 million cubic metres.

Port authorities say the investment also supports Tanzania’s ambitions to position Dar es Salaam as a regional shipping hub, competing with other Indian Ocean ports.

The project, implemented by the Tanzania Ports Authority (TPA), began in August 2024 and is scheduled for completion in February next year.

TPA officials say the facility will cut tanker turnaround times at the port from an average of 22 days to seven days per vessel. It is also expected to eliminate demurrage charges of $25,000 (Tsh58 million) per delay.

Lower import costs could also ease domestic fuel prices over time.

Speaking during the foundation stone ceremony, President Samia said the project would strengthen national energy security by ensuring a more reliable supply of fuel for households and productive sectors.

She directed the Ministry of Energy to begin increasing Tanzania’s strategic petroleum reserves to make the country more resilient to global market volatility triggered by the Middle East conflict, which has already closed off the Strait of Hormuz – a key shipping route for oil cargo destined for East Africa and other global markets.

The President also called for modern systems to track petroleum shipments transiting Tanzania to inland neighbours to improve transparency and safeguard government revenue.

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