Tanzania provides259/- and 535/- subsidies per litre of fuel in response to pressure of geopolitical tensions

DODOMA: THE Tanzanian government has warned that continued global economic turbulence is exerting pressure on domestic prices, with fuel and fertilizer costs rising sharply due to geopolitical tensions and supply chain disruptions. Presenting the 2026/27 national budget estimates at the Parliament in Dodoma on Thursday, the Minister for Finance Ambassador Khamis Mussa Omar said the global economy has been affected by multiple crises, including the COVID-19 pandemic, the Russia–Ukraine conflict, trade and tariff disputes involving the United States and China, and recent tensions between Iran, the United States and Israel that began in February 2026. He told the House that Tanzania, as part of the global economy, has not been insulated from these shocks, particularly through international trade and investment channels. Elaborating on the master, he said that between March and May 2026, retail fuel prices in Dar es Salaam increased significantly, with petrol rising by 44 per cent and diesel by 49 per cent. He said imported fertilizer prices also increased by between 4 per cent and 46 per cent, depending on the type, with the country relying on imports for more than 80 per cent of its fertilizer needs, 70 per cent of which comes from the Middle East. Despite the pressures, the Minister assured Parliamentarians that the government is closely monitoring the situation and implementing measures to protect citizens and maintain economic stability. ALSO READ: EAC bloc approves series of customs duty reforms for 2026/27 in efforts to protect domestic industries He said the government has ensured stable fuel availability through sufficient importation, while also tracking price trends and introducing targeted subsidies to cushion consumers where in May and June 2026, it provided subsidies of 259/- and 535/- per litre of diesel respectively to reduce the impact of rising fuel prices. “The government is strengthening coordination of monetary and fiscal policies in collaboration with financial institutions and the private sector to contain inflation and stabilise prices of essential commodities,” he said. Moreover, the minister stated that in the medium term, the government will accelerate the establishment of the Strategic Petroleum Reserve (SPR) to safeguard fuel supply during global crises and sudden price shocks. He further noted that Tanzania will expand investment in alternative energy sources, including natural gas and renewable energy, to reduce dependence on imported fuel and enhance long-term energy security. The post Tanzania provides259/- and 535/- subsidies per litre of fuel in response to pressure of geopolitical tensions first appeared on Daily News . The post Tanzania provides259/- and 535/- subsidies per litre of fuel in response to pressure of geopolitical tensions appeared first on Daily News .