Tanzania, which imports nearly all of its fuel, is particularly vulnerable to global price swings. Energy Minister Deogratius Ndejembi said petrol prices rose by 69% between February and March 2026, while diesel jumped by 104%, with kerosene and jet fuel also seeing sharp increases.

Economist Kelvin Mouris pointed to the potential of natural gas and electric vehicles to reduce costs, but noted that infrastructure gaps remain a challenge despite Tanzania’s large gas reserves.

The government has introduced measures to stabilise supply, including building fuel reserves to cover at least three months. The price surge is linked to disruptions in global oil supply chains, particularly in the Strait of Hormuz.

Footage from the capital showed groups of protesters marching through central Nairobi as police vehicles moved in and several people were detained. Residents said the anger was being driven by record pump prices and the wider cost-of-living squeeze, with transport costs rising sharply for ordinary Kenyans.

Many businesses remained open, but there were reports of blockades and clashes in parts of the central business district before police dispersed the crowds. The demonstrations came despite President William Ruto’s recent insistence that protests would not lower prices and that the focus should be on finding practical solutions.

The protests unfolded against the backdrop of a wider global energy shock linked to the war in the Middle East and restrictions on shipping through the Strait of Hormuz. The International Energy Agency has described the disruption as “the greatest threat to global energy security in history,” with oil supply and tanker movements severely affected.

A summary of the average monthly pensions across Europe highlights just how wide that gap has become. At the top sits Iceland, where retirees receive more than €3,100 ($3,645) a month on average. At the lower end of the high-income bracket, countries like Ireland and Belgium hover just above €2,000 ($2,351).

According to OECD and Eurostat data, Northern and Western European countries consistently rank highest in pension payouts.

Iceland leads with roughly €3,169 per month per beneficiary, followed by Luxembourg (€2,868) and Denmark (€2,545). Norway and Switzerland also sit comfortably above €2,300.

These countries share a common model, and that is a strong public pension system combined with occupational and private schemes. OECD analysis shows that multi-pillar pension systems, where state support is supplemented by employer-backed and private savings, tend to deliver higher retirement incomes.

There is also a broader economic context where higher wages during working life translate into larger contributions and, ultimately, higher pensions.

Countries such as Austria (€2,156), the Netherlands (€2,118) and Belgium (€2,021) fall slightly behind the Nordic leaders but remain above the €2,000 mark.

Eurostat data indicate that these countries benefit from mature social security systems with wide coverage, though replacement rates, the share of income maintained after retirement, vary depending on career length and contribution history.

Ireland, at around €2,005, rounds out the group. While its public pension is relatively modest, it is often supplemented by private retirement savings, which OECD reports say are increasingly important across Europe.

Why the gap exists

The variation in pension levels comes down to a few key factors:

Eurostat has repeatedly warned that Europe’s ageing population will intensify these pressures in the coming decades, with the ratio of working-age people to retirees continuing to shrink.

However, Higher pensions do not automatically mean better living standards.

Countries like Switzerland and Norway, while offering higher monthly payouts, also have significantly higher costs of living. OECD comparisons show that purchasing power can vary widely, meaning €2,000 in one country may stretch further than €3,000 in another.

Local reports said rationing measures now limit drivers to 20 to 30 litres per car and 5 to 10 litres for tricycles, while essential service vehicles are being prioritised. Commuters voiced frustration that shortages were hitting an oil-producing country that also refines fuel in Zinder.

The crisis comes as global oil prices rise following disruptions linked to tensions around the Strait of Hormuz. Although Niger has produced oil since 2011 and the Zinder refinery supplies about 1.1 million litres a day, demand has outstripped supply. The pressure has also been worsened by higher fuel prices in neighbouring Nigeria , which have reduced the flow of smuggled fuel that many communities in southern Niger have long relied on.

Protesters accused the government of failing to manage the energy shortage and blamed both weak regulation and poor diplomacy for the disruption in fuel supplies. Some said the crisis had been worsened by conflict-linked disruption to routes from the Middle East , a key source of Bangladesh’s energy imports.

Others said the authorities were downplaying the severity of the shortage, pointing to long queues at petrol stations as evidence of growing public hardship.

The protest, led by Jamaat-e-Islami and an 11-party opposition alliance, comes as wider instability in global energy markets adds pressure on fuel-dependent economies.

Brazil follows at a distance with roughly 21 million tonnes, while India, Australia and Russia each hold significantly smaller but strategically important reserves.

Rare earth elements, which are a group of 17 minerals including neodymium, dysprosium and terbium, are indispensable in high-performance magnets, wind turbines, electric vehicles and advanced electronics.

The USGS notes that global demand continues to rise sharply, driven by clean energy technologies and defence applications, increasing the strategic importance of stable supply chains.

China’s dominance is not limited to reserves. The country also accounts for the majority of global rare earth mining and processing capacity, giving it outsized influence over pricing and availability.

Beyond China and Brazil, several countries are positioning themselves as alternative suppliers.

India holds approximately 6.9 million tonnes of reserves, while Australia, already a key producer, has around 5.7 million tonnes. Russia and Vietnam each account for roughly 3–4 million tonnes, according to USGS estimates.

The United States , with about 1.9 million tonnes, remains comparatively limited in reserves but is investing heavily in domestic production and processing to reduce reliance on imports.

Greenland has also drawn attention in recent years, with around 1.5 million tonnes of estimated reserves, though development remains politically and environmentally sensitive.

In Africa, Tanzania and South Africa hold smaller but notable deposits, underscoring the continent’s growing relevance in critical minerals discussions.

The concentration of rare earth resources, and even more so, processing capacity, however, has raised concerns among Western governments.

The USGS highlights that supply disruptions, whether due to geopolitical tensions, export controls or environmental regulations, could have significant downstream effects on industries ranging from renewable energy to defence manufacturing.

Recent years have seen increased efforts by the United States, the European Union and allies to diversify sourcing, invest in recycling technologies and develop alternative materials.

That changed when he converted his vehicle to run on CNG. Almost immediately, his daily fuel costs dropped from 25,000 Tanzanian shillings (about USD 9.70) to just 10,000 shillings (about USD 3.88). With expenses slashed, Kayaula began reaching his income targets earlier, shortening his workday and reclaiming time with his family.

“Now I can save more, and taking care of my family has become easier,” he says. “I even get to have dinner with them – something I couldn’t do before.”

Cheaper fuel, shorter days

Kayaula is one of more than 7,000 drivers across Tanzania who have switched to CNG, a transition gaining momentum particularly in commercial transport.

In Dar es Salaam, the country’s commercial hub, CNG is steadily emerging as a viable alternative to petrol and diesel. An 11-kilogram tank, costing around 15,000 shillings (about USD 5.82), can power a bajaji for up to 180 kilometres – significantly farther than petrol.

Although converting a vehicle can cost as much as 1 million shillings (around USD 388), many drivers recover this investment within months through fuel savings. Government data indicates that CNG can cut fuel costs by more than half, a compelling advantage for low-income earners.

Private garages, such as NK CNG AUTO LTD in Dar es Salaam, have responded by offering instalment plans to make conversions more accessible. According to the company’s head mechanic, Mackline Rwamugira, interest is steadily growing.

“Once drivers see the savings from their fellows, they’re convinced,” he says.

While still a fossil fuel, CNG burns more cleanly than petrol or diesel, producing lower emissions of carbon dioxide and nitrogen oxides. In densely populated cities like Dar es Salaam, this could help ease air pollution and reduce climate impacts.

Transport currently accounts for nearly 60 percent of Tanzania’s energy-related carbon emissions. With vehicle numbers rising, the need for cleaner alternatives is becoming more urgent.

“If scaled properly, CNG can bridge the gap toward sustainable transport while improving air quality now,” says Fatma Mshindo, a government urban transport analyst.

Another advantage lies in supply. Unlike petrol and diesel, which are imported, CNG is produced domestically. The Tanzania Petroleum Development Corporation (TPDC) supplies gas from local reserves, with nearly 80 percent used in transport.

By June 2024, more than 1,900 CNG vehicles were refuelling daily. Though still a small share of the total, the number is growing. Infrastructure is expanding too. A new mother station opened in Dar es Salaam in May 2025, capable of serving over 1,000 vehicles per day.

Since 2020, the number of CNG refuelling stations has risen from just two to around nine, all located in Dar es Salaam. The government is also planning mobile stations to extend access to other regions.

Infrastructure gaps remain

Outside the capital, however, access to CNG remains limited. In Bagamoyo, about 70 kilometres north of Dar es Salaam, bajaji driver Juma Mbasso is eager to switch but cannot.

“We hear about the savings from fellow drivers and want to switch,” he says. “But there’s no CNG station here. Even if I converted, I’d have to drive to Dar to refuel.”

His situation underscores a major challenge: without wider infrastructure, the benefits of CNG risk remaining concentrated in urban areas.

Even so, momentum is building. More than 60 companies have applied to construct new refuelling stations. The Dar Rapid Transit system is testing gas-powered buses, and the government is considering tax incentives to accelerate adoption.

Early concerns among drivers – ranging from fears about engine performance to higher maintenance costs – have gradually eased. Rwamugira says better information has been key.

“We explain how CNG works and what to expect,” he notes. “With routine care, CNG engines perform just as well.”

Challenges persist. Fuel supply can be inconsistent, sometimes leading to long queues at stations. Insurance options for converted vehicles remain limited, and safety regulations are still evolving. Analysts emphasise that strong oversight will be crucial.

“There’s real momentum,” says Mshindo. “But clear standards, consistent enforcement, and long-term pricing policies are essential.”

Tanzania’s experience reflects a broader regional shift. Egypt’s CNG programme had reduced carbon dioxide emissions by around 5 million metric tonnes by 2021 and converted more than 500,000 vehicles by 2023. Kenya is also piloting CNG buses and ride-hailing fleets, part of a wider push for cleaner and more affordable transport across Africa.

“These developments show what’s possible with the right strategy and investment,” Mshindo adds.

Beyond fuel savings

In Dar es Salaam, the effects are already being felt beyond the drivers themselves. Lower operating costs are translating into more flexible fares for commuters.

“Before, some drivers wouldn’t even discuss prices,” says Oliver Francis, a city resident. “Now they’re more open to fair rates.”

Office worker Nasra Muniri has noticed the difference in her daily commute. “I used to pay 3,500 shillings (about USD 1.35) each way. Now it’s often 2,000 (about USD 0.77) or less,” she says. “It makes a difference.”

For small business owners like Joyce Masambaji, who relies on bajajis for deliveries, the shift has brought greater predictability.

“Drivers charge less and aren’t stressed about fuel,” she explains. “It’s easier to plan.”

CNG is not a complete solution to Tanzania’s transport or climate challenges. Yet in a difficult economic climate, it is already offering tangible relief – not just in reduced costs, but in time regained.

For Kayaula, the change goes beyond economics.

“Before, I barely saw my children awake,” he says. “Now I help with homework, I rest, and I feel like a real part of home again.”

With thousands of drivers already making the switch and adoption continuing to grow, Tanzania is positioning itself as a potential model for cleaner, more affordable transport systems in emerging economies.

The opinions and thoughts expressed in this article reflect only the author's views.

Mweha Msemo is a Tanzanian freelance journalist based in Dar es Salaam. He focuses on stories of marginalised communities, social justice, and digital rights. With a passion for amplifying unheard voices, his work highlights the lives and challenges of underrepresented groups, reflecting his commitment to raising awareness and fostering understanding.

The increase is linked to a surge in oil prices, which has pushed jet fuel costs significantly higher and added pressure on airline operations. 

Jet fuel prices have climbed sharply, in some cases doubling, making it more expensive for airlines to operate flights. Since fuel is a major part of airline expenses, carriers are passing these costs on to passengers through higher fares and added surcharges.

Several airlines have already announced price increases.

Cathay Pacific has raised fuel surcharges by about 34%, adding around $200 to long-haul tickets. Scandinavian airline SAS has added roughly $50 to short-haul flights and up to $290 for transatlantic routes. Air France-KLM has increased long-haul economy fares by about €50, while Air India has introduced surcharges of up to $50 on international flights.

Other carriers are also adjusting pricing. Thai Airways plans to increase ticket prices by 10% to 15%, while Qantas is raising fares on selected routes. Budget airline FlySafair has introduced smaller surcharges ranging from $4 to $18 to manage rising costs. 

In addition to higher prices, some airlines are cutting flights to reduce expenses. Air New Zealand has cancelled more than 1,100 flights, while SAS has also reduced its schedule. 

Rising fuel costs are also affecting flight routes. Airlines are adjusting paths to avoid certain regions, which increases travel time and fuel use, adding further pressure on pricing.

Industry estimates suggest ticket prices could rise further if fuel costs remain high. In some cases, fares on key routes have already increased sharply within a short period, reflecting how quickly airlines respond to fuel price changes.

According to maritime analyses and industry insights reported by Marine Insight , canals serve as strategic connectors between seas, rivers, and industrial regions, reducing transit times and fuel costs while easing congestion around longer natural routes.

The Panama Canal, which stretches roughly 82 km, remains one of the most economically vital waterways globally. It links the Atlantic and Pacific Oceans, saving ships from the lengthy and hazardous journey around South America ’s Cape Horn. Despite its relatively modest length, its geopolitical and commercial significance is outsized.

Similarly, Europe’s Kiel Canal in Germany, measuring just over 98 km, is one of the world’s busiest artificial waterways, allowing vessels to bypass the Danish Straits and significantly cut transit time between the North Sea and the Baltic Sea.

Russia’s Volga–Don Canal, at approximately 101 km, plays a key role in connecting the Caspian Sea basin with global shipping routes, forming part of a larger inland water transport network that supports regional trade.

Further north, Sweden’s historic Göta Canal, spanning about 193 km, is less commercially dominant today but remains a notable engineering achievement and an important cultural waterway.

However, Egypt ’s Suez Canal, also around 193 km long, is a cornerstone of global trade. It provides the shortest maritime route between Europe and Asia, handling a significant share of the world’s container traffic. Disruptions to the canal, as seen in recent years, have demonstrated its critical role in supply chains and energy shipments.

Longer inland systems, such as the Illinois Waterway in the United States (over 540 km) and the Erie Canal (around 582 km), highlight the importance of canals in domestic trade. These waterways connect major river systems and industrial hubs, facilitating the movement of bulk goods like grain, coal, and petroleum.

Towering above all is China’s Grand Canal, extending approximately 1,777 km. Recognised as the world's longest canal, it links key economic regions from Beijing to Hangzhou. According to Marine Insight, the Grand Canal has historically supported internal trade and continues to play a role in water transport and regional development.