Tanzania’s fuel consumption has surged to new heights, marking a defining moment for the country’s energy landscape. Latest data from the Energy and Water Utilities Regulatory Authority (EWURA) show fuel consumption jumped by about 10.9% over the past year, while imports rose by 12%, reaching close to 9.22 billion litres in the 2023/24–2024/25 reporting period.
Behind these numbers lies a larger story — one of economic resilience, expanding infrastructure, and growing energy appetite that is reshaping business opportunities across the nation.
Steady Growth Backed by Real Activity.
In the past decade, Tanzania’s steady economic activities such as mining, construction, transportation as well as improved road network. This year, the National Bureau of Statistics (NBS) reported GDP growth of 5.4% in the first quarter of 2025. Each of these sectors depends heavily on fuel.
Dar es Salaam remains the heartbeat of fuel consumption, followed by Mwanza, Pwani, Arusha, and Dodoma. But interestingly, EWURA notes that smaller regions are catching up fast as more retail outlets open beyond the major cities. The regulator recorded roughly a 10% rise in the number of new petrol stations compared to last year, a clear sign that investors are taking notice of untapped regional markets.
In Mwanza, for instance, the growing logistics network around Lake Victoria has increased the movement of goods and people. In Dodoma, the government’s ongoing relocation of offices continues to drive higher fuel usage. Meanwhile, coastal towns like Bagamoyo and Kibaha are seeing more petrol station developments as fuel traders expand to serve construction and industrial sites.
What Drives This Growth?
Three main forces are shaping Tanzania’s growing fuel appetite.
First, urbanization. As cities expand and new housing estates rise, there’s a natural increase in private transport and building activities that demand diesel and petrol.
Second, transportation. Tanzania’s vehicle market has grown by over 17% in the first half of 2025, according to Focus2move. This expansion reflects both rising consumer incomes and improved credit access for vehicle financing. More cars mean higher gasoline use.
Third, industrial expansion. The government’s push for industrialization — including new special economic zones, cement plants, and agro-processing facilities — is increasing fuel consumption for generators, trucks, and heavy machinery. The World Bank’s April 2025 update also highlighted the government’s energy and clean-cooking initiatives as critical for broadening energy access and supporting rural productivity.
Together, these trends signal that fuel demand is likely to stay strong in the near term, with additional momentum from the tourism and logistics sectors.
Read:What Every Petrol Station Operator Should Know Before Expanding
Opportunities Hidden in Plain Sight.
The data may sound technical, but for investors, it translates into one clear message: there is room to grow.
Expanding retail forecourts along fast-growing routes — such as Dar es Salaam to Dodoma, or Mwanza to Shinyanga — could serve the increasing flow of goods and commuters. In urban centers, adding LPG cylinder exchange points or small convenience stores at petrol stations could attract new customers while aligning with the government’s clean-cooking agenda.
There is also a growing opportunity to serve fleet operators. With more logistics companies operating across the central corridor, demand for fuel card systems, bulk supply contracts, and mobile refueling services is climbing.
Read also:A Detailed Feasibility and Project Report on Starting a Profitable Petrol Station in Tanzania
However, smart expansion will require strong financial discipline. Tanzania’s regulated fuel prices — set monthly by EWURA — mean that profit margins depend more on operational efficiency than on price control. Those who plan inventory well, diversify their supply routes, and optimize storage timing will stand a better chance at maintaining healthy returns even during price fluctuations.
Balancing Growth with Risk.
Despite the positive outlook, challenges persist. Global oil price fluctuation, shipping delays through major routes, and currency shifts continue to test local operators. A recent Reuters report in October 2025 warned that disruptions in shipping lanes and tightening global supplies could add pressure to import costs.
Still, the risk is manageable. Industry analysts suggest strategies like staggered imports, partnerships for shared storage, and rural franchise models that reduce capital exposure while capturing new customers.
Tanzania’s growing energy appetite is not a temporary wave. It reflects deep structural changes — urban migration, industrial expansion, and regional integration — that are expected to continue driving demand for years ahead.
The Road Ahead
From Dar es Salaam’s bustling port to the quiet outskirts of Dodoma, the signs of an energy-driven transformation are everywhere. Petrol stations are no longer just fuel stops; they are turning into mini service hubs — offering mini supermarket service, LPG exchange,ATM, car wash, and digital payment services such as M-Pesa,.
With fuel consumption now rising faster than population growth, the next frontier will be strategic expansion: where investors not only build more stations but also adapt to a changing energy economy that blends fuel, gas, and future technologies.
The road is open. Those who move with insight and and make informed investment decisions could find themselves leading the next chapter of Tanzania’s fuel retail evolution.
