THE price of diesel and aviation fuel in Zanzibar has increased this month, while the price of petrol has decreased.

Mbarak Hassan Haji, the Zanzibar Water and Energy Regulatory Authority (ZURA) head of communication, said at a press conference at the weekend that diesel is now sold at 3,076/-- per litre, up from 2,907/- in July — a difference of 169/- or 5.81 percent.

Petrol prices for this month dropped slightly to 2,978/- from 2,996 last month, a difference of 18/- or 0.60 percent, while aviation fuel is priced at 2,421/- this month, up from 2,370/-, an increase of 51/- or 2.15 percent, he said.

Kerosene price will remain at 3,000/- per litre, a steady rate for three months, he stated, explaining that the price changes relate to fluctuations in global purchase prices, import costs and foreign currency exchange rates.

ZURA sets prices by taking into account average trends in global fuel prices (known technically as Platts Quotations), along with importation costs at Dar es Salaam and Tanga ports and currency exchange variations used for fuel purchases.

Other contributing factors are transport, insurance and premium fees to the revenue authorities as well as government levies, after which profit margins for wholesalers and retailers has to be considered for the price caps to be set, he elaborated

Addressing recent incidents of seizure of smuggled fuel on Pemba Island, he appealed to the public to avoid using illicit fuel as products of uncertain quality aren’t advisable for the safety of their vehicles.

ZURA is also promoting the use of gas for motor vehicles as well as adopting alternative energy sources, he said, encouraging the public to report any challenges they face to the agency for prompt action.

He cited the plan for construction of a fuel depot in Mangapwani port as well in progress, with investors having shown interest in the matter.

Once completed, the depot will enhance Zanzibar’s capacity to store fuel, offer opportunities for ships to load and unload, while helping to relocate operations from the unsafe Mtoni area and reduce costs, he added.