Tanzania on Wednesday sanctioned a more than 30 percent increase in official fuel prices, reversing recent government assurances that stocks would last until at least mid-May, as the war between Iran and combined US-Israel forces continues to disrupt supply lines through the Middle East.

In a public notice, the Energy and Water Utilities Regulatory Authority (Ewura) announced new cap prices for petroleum products, effective immediately, despite recent government assurances that reserves would cover domestic demand until at least mid-May.

Retail prices in the commercial capital Dar es Salaam rose sharply. Petrol increased from Tsh2,864 ($1.10) to Tsh3,820 ($1.53) per litre, while diesel climbed from Tsh2,951 ($1.15) to Tsh3,806 ($1.52). Kerosene, widely used by low-income households, now costs Tsh3,684 ($1.48) per litre.

In inland regions such as Mara, Mwanza, Kagera and Kigoma, petrol and diesel prices exceeded Tsh4,000 ($1.60) per litre.

The increase is likely to feed quickly into transport costs, pushing up prices of food and other basic goods at local markets, as well as public transport fares.

According to Ewura Director General James Mwainyekule, the new prices have been “largely influenced” by the Middle East conflict, now in its second month, which has led to the indefinite closure of the Strait of Hormuz, a key route for about 20 percent of global oil supplies.

The disruption has driven up shipping costs, including higher insurance premiums for vessels and rising Free on Board (FOB) prices in the Gulf market.

“(Consequently) the premiums of products received through the port of Dar es Salaam increased by an average of 15.3 percent for petrol and 10.8 percent for diesel, with no changes for kerosene. The premiums for products received through the port of Tanga increased by 6.9 percent for petrol, with no changes for diesel. There are no changes for premiums for products received through the port of Mtwara,” the regulator said.

On March 23, the Petroleum Bulk Procurement Agency (PBPA) said Tanzania held 230 million litres of petrol (38 days), 180 million litres of diesel (47 days) and 31 million litres of aviation fuel (91 days).

The Tanzania Petroleum Development Corporation said additional shipments, with 245 million litres of petrol, 208 million litres of diesel and 23 million litres of jet fuel, were already secured and expected between May and July.

Authorities also moved to curb hoarding and artificial shortages. Measures include inspections of private storage depots and real-time tracking of fuel shipments to prevent diversion to more profitable markets.

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