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The Tanzanian government has tasked the Tanzania Petroleum Development Corporation (TPDC) with importing fuel in bulk to stabilize prices and ensure availability from May to July 2026. This decision aims to address global supply challenges and is expected to lower costs compared to previous import methods.
Africa-Press – Tanzania. THE Tanzanian government has taken emergency measures by directing the Tanzania Petroleum Development Corporation (TPDC) to import fuel in bulk, in order to ensure security and sufficient availability of fuel in the country at stable prices from May to July 2026.
This was stated by the Permanent Secretary in the Ministry of Energy responsible for Petroleum and Gas, Dr James Mataragio, who said the move is part of the government’s strategy to address challenges in global fuel supply, driven by ongoing conflicts in the Middle East.
He explained that under this arrangement, TPDC will purchase fuel collectively, a step expected to secure lower prices compared to the previous system managed through the Petroleum Bulk Procurement Agency (PBPA), where multiple importers purchased smaller quantities individually.
This decision comes at a time when global fuel prices have risen sharply—more than doubling in recent months from about 50–60 US dollars per barrel in February to approximately 114 US dollars currently—raising concerns about potential price increases domestically.
Dr Mataragio further clarified that the responsible minister has the authority under the Petroleum Act to establish special arrangements for fuel supply in the country, ensuring adequate availability at affordable prices. Given the current situation, TPDC has been instructed to import fuel sufficient to meet demand during this challenging period.
Speaking on the challenges, he noted that during volatile market conditions, it is difficult to obtain fuel at favorable prices when importing in small quantities, as costs tend to be higher.
“What we have observed is that fuel availability becomes more difficult when importing in small quantities, such as one ship at a time, which results in higher prices. To obtain better prices, it is important to import fuel in bulk and secure long-term contracts,” said Mataragio.
He also explained that TPDC has already conducted an analysis of global fuel price trends and determined that bulk purchasing at once will result in lower prices compared to the previous PBPA system.
Dr Mataragio has also directed TPDC to closely monitor the entire importation process to ensure that all intended shipments arrive in the country on time.
In recent months, global fuel prices have surged due to geopolitical conflicts, particularly in the Middle East, leading to increased costs for importing nations. The Tanzanian government has responded by implementing emergency measures to secure fuel supply, reflecting a broader trend where countries are adapting to volatile market conditions by seeking more efficient procurement strategies. The shift to bulk purchasing by TPDC is a strategic move to mitigate the impact of rising prices on consumers and ensure energy security during this challenging period.
