Tanzania MPs Are Demanding Fuel Tax Cuts as Middle East Crisis Drives Prices Higher

by Ikeoluwa Juliana Ogungbangbe
Tanzania fuel tax relief Middle East crisis fuel prices

KEY POINTS


  • Tanzania MPs are urging the government to slash fuel import levies to control rising prices.
  • Lawmakers want fuel prices capped at between 800 and 1,000 shillings per litre as recently announced.
  • MPs are also calling for investment in large fuel storage facilities to secure domestic supply during crises.

Tanzania’s lawmakers are not waiting for fuel prices to stabilize on their own.

During debate on the Prime Minister’s Office budget estimates of 12.5 trillion shillings for the 2026/27 financial year, a section of members of parliament called on the government to cut fuel import levies, warning that unchecked price increases will cascade through the economy and hit ordinary Tanzanians hardest.

The pressure reflects a broader anxiety across East Africa as the ongoing Middle East crisis disrupts global oil supply and pushes pump prices higher. Tanzania’s government has taken some steps, including deploying the Tanzania Petroleum Development Corporation to ensure sufficient fuel stocks through July. But lawmakers say that is not enough.

What MPs are asking for

Singida West MP Elibariki Kingu, of the ruling CCM party, credited the government for blocking attempts to divert fuel consignments in transit to other countries. He described those attempts as opportunistic profiteering during a crisis. His next demand: go further.

Kingu urged Prime Minister Mwigulu Nchemba to cut unnecessary expenditures and allowances and redirect the savings toward subsidizing fuel access. He also pushed for investment in large fuel storage facilities that would allow Tanzania to stockpile reserves during future crises and supply neighboring landlocked countries such as Zambia.

“The country should leverage its geographical advantage to serve other countries while securing a sustainable domestic supply,” he said.

A broader economic warning

Ukonga MP Bakari Shingo, of ACT-Wazalendo, was more direct about the price ceiling. He urged the government to keep pump prices within the recently announced range of 800 to 1,000 shillings per litre and called for a review of which fuel taxes could be eliminated to achieve that.

Shingo connected high fuel costs to inflation, warning that rising prices for transport and goods would squeeze workers across the public and private sectors.

“If left unchecked, this situation may push workers in public service, the private sector and industries to resort to dishonest practices to survive,” he said.

Biharamulo West MP Ezra Chiwelesa raised a different concern, calling for action against those spreading misinformation about the fuel situation, which he said was creating unnecessary panic.

The debate signals that Tanzania’s parliament wants faster, bolder action on fuel costs. The government has acknowledged the pressure. Whether it translates into actual levy cuts before the next budget cycle remains to be seen.

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