DAR ES SALAAM: TANZANIAN consumers have received relief this month following a drop in petrol prices, thanks to government measures aimed at cushioning the economy from the effects of escalating global fuel market disruptions caused by tensions in the Middle East.
Despite a volatile international energy market marked by rising shipping costs, supply uncertainties and higher insurance premiums, petrol prices have declined in the latest review by the Energy and Water Utilities Regulatory Authority (EWURA).
According to EWURA’s statement issued by Acting Director General, Mr Gerald Maganga, in Dar es Salaam, petrol will retail at a maximum of 4,086/- per litre this month, providing relief to motorists and helping to ease transportation costs.
The government has also maintained a diesel subsidy of 534.91/- per litre to protect key economic sectors from the impact of rising fuel costs.
The intervention comes as the global oil market continues to grapple with the effects of the conflict involving the United States, Israel and Iran, which has disrupted oil production, storage and transportation infrastructure across the Middle East.
The crisis has particularly affected the Strait of Hormuz, a strategic maritime route that handles nearly 20 per cent of global oil shipments.
Disruptions along the corridor have increased freight charges, reduced vessel availability and driven up insurance premiums for cargo vessels transporting petroleum products.
Although petrol prices have declined, diesel prices have recorded a slight increase. In Dar es Salaam, diesel will retail at 4,333/- per litre. EWURA data shows that premiums for fuel imported through the Port of Dar es Salaam rose sharply in June, thresholds.
Under IMF and World Bank debt sustainability frameworks, the indicative threshold for countries with Tanzania’s economic characteristics stands at 55 per cent of GDP. The minister said the country therefore continues to face a moderate risk of debt distress while maintaining sufficient fiscal space to absorb potential external shocks.
According to the government, the increase in debt reflects continued investment in strategic development projects under the Tanzania Development Vision 2050 framework.
Data from the Ministry of Finance show that external debt stood at 28.17 billion US dollars, financing major projects including the Standard Gauge Railway (SGR), the 2,115-megawatt Julius Nyerere Hydropower Project (JNHPP) and the East African Crude Oil Pipeline (EACOP).
Domestic debt stood at 13.63 billion US dollars, reflecting growing participation by local financial institutions and capital markets in financing development.
The minister said the government’s longterm strategy is to gradually reduce reliance on borrowing by increasing domestic revenue mobilisation, raising the tax-to-GDP ratio from 12.8 per cent to 20 per cent and expanding the use of Public-Private Partnerships (PPPs) and innovative financing instruments such as green bonds.
Data tracking African debt burdens indicate that Tanzania remains relatively well-positioned compared to many countries on the continent.
According to data compiled by Trading Economics, Tanzania ranked 33rd among 49 African countries in terms of debt-to-GDP ratio, placing it well below heavily indebted economies such as Sudan, Senegal and South Africa. Within East Africa, Tanzania’s debt-toGDP ratio stood at 49.7 per cent in 2025, placing it in the middle range among regional economies.
The ratio was lower than those recorded by South Sudan (71.9 per cent), Kenya (67.8 per cent), Rwanda (67.2 per cent) and Uganda (54.2 per cent), but higher than those of the Democratic Republic of Congo (20.2 per cent), Burundi (13.1 per cent) and Somalia (9.1 per cent).
The figures suggest that Tanzania has maintained a moderate debt burden relative to the size of its economy while continuing to finance major infrastructure and development projects. Although some countries in the region report lower debt ratios, these often reflect lower levels of borrowing and more limited access to international financing.
By contrast, Tanzania has continued to attract funding for strategic investments while keeping its debt indicators within internationally accepted sustainability thresholds. The government maintains that this balance has enabled the country to support economic growth, expand infrastructure and preserve macroeconomic stability without significantly increasing debt vulnerabilities.