This paper assesses the distributional impact of fuel taxation in Tanzania (Mainland), using the 2007 Household Budget Survey data. Two main approaches are used to assess whether fuel taxation is progressive or regressive. The first approach employs two indices of progressivity, namely the Kakwani Index and the Suits Index, whereby the standard errors of the estimates of these indices are used to determine whether the estimates are statistically different from zero or not. The second approach invokes the stochastic dominance tests using the concentration curve and the magnitude of the income elasticity of demand for fuel based on the concentration and the Lorenz curves. The results show that for the rural areas, the urban areas, and the whole country, taxes on electricity, petrol and diesel are progressive, whereas taxes on firewood, kerosene and transport are regressive. The tax on charcoal is found to be regressive in the urban areas, but progressive in rural areas. Using the concentration and Lorenz curves, it is found that firewood is an inferior good in the urban areas and marginally inferior for the whole country, whereas in the rural areas firewood is found to be a necessity. Kerosene and transport are found to be necessities in both rural and urban areas, whereas charcoal is found to be a luxury good in the rural areas, but a necessity in the urban areas. Electricity, petrol and diesel are found to be luxury goods in both the rural and the urban areas. Thus, by focusing only on the first order distributional impact of taxation, taxes on electricity, petrol and diesel are found to be progressive. These results are however partial because the full distributional impact of these taxes can only be assessed by using a general equilibrium approach.