DAR ES SALAAM, May 27 -- POLICY experts advise the government to avoid permanent universal fuel subsidies, recommending instead a strict readiness for targeted, time-bound interventions if surging prices threaten essential transport, agriculture, and household welfare.

The recommendation, issued jointly by the National Planning Commission and the United Nations Development Programme (UNDP) in their latest report, Assessment of Economic Impacts on Tanzania Arising from the Gulf Crisis, identifies petroleum products—specifically diesel and kerosene—as the primary channels through which the external shock hits the local economy.

Left unchecked, rising fuel costs threaten to spike production and transport costs, erode consumer p...