Dissertation (MA Business Administration)This study aspires to bring answers to the source and cost of fuel for the household use in Tanzania. The study was conducted on two sampling sites of Kisasa and Ntyuka village from Dodoma municipal. A total number of 200 respondents formed the study samples and 100 respondents were taken from Kisasa and 100 respondents from Ntyuka village. The methods of data collection included structured interview and documentary review. The instruments used in data collection were interview schedule and interview guide while information was analysed using SPSS 12 version for window (SPSS, 2005). Descriptive statistics were used to calculate means and standard error while non parametric tests were applied to test the differences among the type of fuel used and the cost of fuel in the household among people of different income levels from the two sampling sites. In general the study found that the source of fuel energy used by the low income household is firewood and maize cobs for cooking and kerosene for lightning where as the type of fuel used by the medium/high income household is charcoal and LPG for cooking and electricity for lightning. The average income for the household termed as low income level household was Tsh 48,555.5 ± 750.531 per month where as the average income for the household termed as medium/high income household were Tsh 1,212,000 ± 33,492.9 per month. The study also found that the average cost of fuel for the household use for the low income household is Tsh 3,280 ± 278.1 per month where as the average cost of fuel for the household use for the medium/high income households were Tsh 131,065 ± 2,276.9 per month. In general the study recommends that the Government under the ministry of Agriculture should do research on drought resistance crops to be introduced to the semi arid regions like Dodoma to enables peasants who depends only on agriculture to have more yield and improve their income and hence being able to adopt modern fuels like LPG, biogas and electricity which are cleaner and faster. The study also recommends that Rural Energy Agent (REA) which is an autonomous institution to promote and facilitate access to modern energy services to rural area require more efforts so as to reach their goals, and lastly the study recommends that government should subsidise some household fuel energy like kerosene and LPG especially to rural people so that they can avoid using firewood for cooking and hence reserve the environment.