|
Isles’ govt backs down on fuel price control
2006-09-04 09:27:25
By Mwinyi Sadallah, Zanzibar
Zanzibar government will not fix fuel prices in the local market.
The decision was announced at the weekend by the Zanzibar Revenue Board (ZRB),a day after the fuel price rose.
The board’s revenue education manager Rashid Ali Juma said,fuel importers would henceforth determine prices according to the world market and the appreciation of the US dollar.
He said that following comprehensive discussion on the matter, the government had decided to pull out to end the stand off between fuel importers and the government.
He said fuel importers often complain about the high costs incurred to import it.
He said the fuel prices fluctuate according to changes on the world market.
He said the government would intervene only when fuel importers abuse the opportunity.
The move comes amid complaints that fuel price fluctuation had also affected foodstuffs prices after petrol, diesel and kerosene started skyrocketing.
Last week fuel companies raised prices from 1,250/- per litre to 1,350/- for petrol, while diesel leapt from 1,260/- a litre to 1,310/- and kerosene from 900 to 980/-.
Commuter bus operators also hiked fares from 250/- to 300/-.
Supply of fuel has been intermittent since the Zanzibar government broke the contract of a fuel importing company Ecotec,which was replaced by Gapco and Zanzibar Petroleum.
Major fuel companies such as BP and Orxy have pulled out of oil business in the Isles, following the changes the government introduced in 2000 to curb exploitation of consumers.
|
