In Tanzania, fuel is supplied by the private companies. These private companies are regulated by the Tanzanian agency called Energy and Water Utilities Regulatory Authority (EWURA). Administratively, EWURA is under the Ministry of Water and Irrigation but on specific technical matters, EWURA reports to the Ministry of Energy or the Ministry of Water and Irrigation.

In 2016, a total of 5.5 billion litres of petroleum products (diesel, petrol, kerosene, Jet-A1 and HFO) was imported into the country. Dar es Salaam port is the main entry point of petroleum products with 99% of all import, while the remaining 1% enters in Tanzania through the Kenyan border at Sirari. In 2016, 60% of the total imported petroleum products were destined to the local market while the rest (40%) was in transit for neighbours’ countries, mainly Zambia, DRC, Rwanda, Malawi, Burundi and Uganda. (Source: EWURA, 2016)

EWURA is an autonomous multi-sectoral regulatory authority established by the EWURA Act Cap 414 of the laws of Tanzania. It is responsible for technical and economic regulation of the electricity, petroleum, natural gas and water sectors in Tanzania pursuant to Cap 414 and sector legislation.

The functions of EWURA include amongst others, licensing, tariff review, monitoring performance and standards with regards to quality, safety, health and environment. EWURA is also responsible for promoting effective competition and economic efficiency, protecting the interests of consumers and promoting the availability of regulated services to all consumers including low income, rural and disadvantaged consumers in the regulated sectors.

For more information on government and fuel provider contact details, please see the following links: 4.1 Tanzania Government Contact List and 4.7 Tanzania Fuel Provider Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel Pricing

EWURA has developed a Petroleum Products Price Setting Rules which provide a pricing formula for computing the petroleum products prices. The formula is composed by:

• FOB price – It is computed based on the weighted average FOB price of vessels that discharged fuel in a given month. The weighted average FOB price of each product is computed separately. The price of the products for each cargo is based on the monthly average price of the products as published by Platts.
• Premiums – These are determined based on the results of supply tenders floated every month.
• Local charges – These are fixed in the formula based on various legal provisions that impose a charge in importation or in doing business in the petroleum sub-sector. They also include some variable business costs that have been identified and approved by EWURA as prudent costs.
• Government taxes – Taxes that have been approved through the Finance bill.
• Margins to wholesalers and retails – Amounts recovered by wholesalers and retailers to cover for operations cost and a return on investment.

Taxes in fuel prices include an excise duty, fuel levy, petroleum fees as provided in the Finance bill. Other taxes or charges are in the regulations of different institutions which are allowed to impose a charge on petroleum products.

Seasonal Variations 

Petroleum products (petrol, diesel and petrol) prices are not directly impacted by seasonal factors.

Fuel Transportation

Fuel is transported within the country using fuel trucks. Transportation is arranged between the owner of the trucks and a petrol station requiring the fuel or the Oil Marketing Company (OMC). For large customers who buy fuel directly from the OMC, the OMC arranges to deliver the products to the client accordingly to the agreement between the two parties.

The fuel storage capacity is currently underutilized which allows a certain flexibility in case of demand increasing.

Standards, Quality and Testing

At 15 degrees centigrade, the petrol must have a maximum density of 780 Kg/m3, a minimal octane number of 91, and maximum sulphur content of 0.015%.

At 20 degrees centigrade, diesel must have a density between 820-870 Kg/m3, a minimum cetane index of 48, and a maximum sulphur content of 0.05%.

At 15 degrees centigrade, kerosene must have a maximal density of 776-840 Kg/m3 and a maximum of sulphur content of 0.15%.

The quality of fuel is checked by Tanzania Bureau of Standards (TBS) on arrival of a fuel vessel at the port. In addition, EWURA carries out regular checks of fuel quality at the depots, petrol stations and fuel transporting vessels.

There is only one fuel quality testing laboratory in Tanzania and it is operated by TBS.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.