Zanzibar’s fuel prices have been adjusted downward for January, the islands’ regulatory authority said, citing lower global oil prices, reduced importation costs, and foreign exchange fluctuations as key factors behind the change.
The Zanzibar Utilities Regulatory Authority (ZURA) announced the revised rates on Friday. Petrol will now sell at 2,813 Tanzanian shillings (approximately US$1.16) per litre, down from 2,815 shillings, a marginal decrease of 0.07 per cent. Diesel has been cut more significantly, to 2,858 shillings (US$1.18) per litre from 2,944 shillings, representing a 2.92 per cent reduction.
Aviation fuel, in contrast, has risen to 2,485 shillings (US$1.03) per litre from 2,376 shillings, reflecting a 4.59 per cent increase. Kerosene prices have been set at 2,900 shillings (US$1.20) per litre, down 3.33 per cent from the previous price.
The announcement was made by Mbarak Hassan Haji, ZURA’s Head of Public Relations, during a briefing with journalists at the authority’s offices in Maisara. He explained that fuel price adjustments are based on a range of factors, including international oil price trends, importation costs through the Dar es Salaam and Tanga ports, transportation and insurance expenses, government taxes and levies, and profit margins for both wholesale and retail fuel dealers.
“The reductions are mainly due to a decline in global crude oil prices, lower fuel importation costs, and favourable changes in the foreign exchange rate,” Haji said.
ZURA’s price-setting mechanism aims to balance consumer protection with sustainable supply, ensuring that fuel remains accessible while covering the costs of importers and distributors. Haji also urged the public to purchase fuel only from licensed stations and to request electronic receipts to avoid disputes and guarantee consumer protection.
The price changes come as Tanzania, including Zanzibar, benefits from generally stable economic conditions. The mainland economy grew by an estimated 5.9 per cent in 2025, while Zanzibar’s economy expanded faster, at 6.8 per cent, boosted by construction, tourism, and manufacturing. The Bank of Tanzania has held its key interest rate steady at 5.75 per cent to support ongoing growth, while inflation has remained low at around 3.5 per cent on the mainland.
Falling global oil prices have eased some pressure on consumer costs in East Africa, though fluctuations in foreign exchange rates continue to influence domestic fuel prices. Analysts note that Zanzibar’s reliance on imported fuel makes the islands particularly sensitive to both global market trends and currency movements.
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The marginal reduction in petrol prices, however, contrasts with the sharper declines for diesel and kerosene. Diesel is a key fuel for commercial vehicles, transport operators, and industrial users, while kerosene is widely used for household cooking and lighting in areas without electricity. The adjustments are therefore expected to have a broader economic impact, helping to lower transport costs and reduce the cost of basic goods and services.
Aviation fuel prices, by contrast, have increased slightly, which could affect the operating costs of airlines and tourism-related services, though the overall impact is expected to be modest given the small scale of aviation fuel consumption compared with petrol and diesel.
ZURA’s approach to fuel pricing aligns with its broader mandate to ensure a stable and transparent energy market in Zanzibar. By regularly reviewing and adjusting prices, the authority seeks to maintain a balance between consumer affordability, operational costs for fuel suppliers, and sustainable supply of petroleum products across the islands.
The new fuel prices took effect from January 9, 2026, and will remain in force until the next monthly review, which ZURA will announce in accordance with global market trends and domestic economic conditions.
