Fuel prices up, again

Fuel prices up, again

Harare, (New Ziana) – Zimbabwe’s energy regulator on Sunday announced a marginal increase in fuel prices, the fourth in a space of a month.

Citing movements on the international market and a revision of duties announced last week, the Zimbabwe Energy Regulatory Authority (Zera) said the price of diesel would go up by 21 cents to $9.27 and petrol by eight cents to $9.09.

The new prices are effective August 12.

“The changes in the fuel prices are due to the FOB (Free on Board) price movements and the revised duty regime applicable from Monday, 12 August 2019,” Zera said.

“Operators may however, sell at prices below the cap depending on their trading advantages.”

FOB refers to costs related to shipping the product.

In the mid-term budget announced last week, Finance and Economic Development Minister, Mthuli Ncube reviewed the duties on fuel to 45 percent and 40 percent ad valorem for petrol and diesel respectively, up from the fixed ZWL$1.15 and ZWL$0.95 per litre of petrol and diesel respectively.

For direct fuel imports, the minister introduced a levy of US$0.45 and US$0.40 per litre petrol and diesel respectively.

The country is still battling fuel shortages despite the changes in prices.

In the past, pricing mismatches were blamed for the shortages as the country’s fuel was the cheapest in the region, fuelling arbitrage opportunities including hoarding for resale later or in neighbouring countries.

Government hopes the constant revision of the fuel prices, to match those obtaining in the region, will also stop the hoarding of the commodity for resale at higher prices on the parallel market.
New Ziana

New Ziana

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