Tanzania’s wholesale fuel business is moving through a season of change. Import volumes are climbing, more firms are entering the market, and international price movements are reshaping how traders operate. Beneath the surface, the industry is balancing growth potential with the pressure of thinner margins.
According to the Energy and Water Utilities Regulatory Authority (EWURA), fuel imports rose by 10.9 percent in the 2023/24 period, showing that demand across the country continues to grow in step with economic activity. That growth has brought in new players. Reports show the number of companies involved in importation has jumped from 33 in 2021 to 73 in 2025.
For the market, more importers mean more competition. On the one hand, businesses have more options when sourcing fuel. On the other, margins for wholesalers are tightening, forcing them to rethink strategies, especially around storage, credit, and working capital.
Price Relief, But Not Without Pressure.
Fuel prices in Tanzania are regulated through EWURA’s monthly cap price system, which sets ceilings for retail and indirectly influences wholesale margins. In early October 2025, EWURA announced a drop in pump prices, reflecting softer international oil product costs. Petrol and diesel became cheaper for consumers, but for wholesalers, the adjustment means recalculating supply timing and managing the risk of holding stock that might quickly lose value.
Global markets play a big role here. International crude and refined product prices have been under pressure in 2025, partly due to oversupply. Reuters reported in late August 2025 that oil was facing an uphill struggle as supply glut concerns mounted.
These developments are bringing temporary relief for end-users in Tanzania, but wholesalers face challenges of managing storage and cash flows in an environment where prices can turn suddenly.
Scale and Storage as Game Changers.
Industry analysts point out that wholesalers who control or lease storage facilities are in a stronger position. Access to tanks allows them to import in bulk, secure better freight economics, and release products gradually rather than being forced to sell immediately at thinner margins. Some traders are already testing models where they pool resources with other dealers to share cargoes and storage costs.
Experiments like these could be vital in the months ahead. For instance, a joint procurement strategy across two or three companies could lower landed costs by at least three percent compared to solo spot purchases. Another possible play is short-term storage arbitrage—leasing tanks, buying discounted parcels when international prices dip, and releasing them later when the local cap price shifts upward.
But these approaches are not without risks. Timing must be precise, and the regulatory cap prices reset every month, which limits how long traders can hold products profitably.
The Credit Challenge.
Another layer of complexity is credit management. Many wholesalers sell to large fleet operators and regional dealers who often request 30 to 45 days of credit. In a volatile pricing environment, this exposes wholesalers to financial risks. Stronger treasury systems, guarantees, or collateralized agreements are becoming necessary to protect cash flows.
Rumours and Realities.
From time to time, there are claims that a domestic refinery will soon change the country’s dependence on imports. But as of today, there is no confirmed policy or project that alters this reality. On the contrary, official data show imports are still climbing, and the Petroleum Bulk Procurement Agency (PBPA) continues to oversee the tender system that secures supplies. The hard truth is that, for now, Tanzania remains an import-dependent market.
Outlook.
Looking forward, the wholesale market in Tanzania offers both opportunity and risk. Demand is rising with economic growth, and infrastructure investments are expanding distribution networks. However, the rapid increase in importers and regulatory constraints on pricing make this a market where efficiency, scale, and financial discipline will separate the winners from the rest.
For traders, the lesson is clear. Success will not only come from moving volumes but also from managing storage smartly, timing procurement with global swings, and keeping tight control on credit. Those who adapt to these shifts stand to gain in the evolving wholesale landscape.
