Staff Reporter
Harare-Motorists, transport operators and businesses across Zimbabwe are set to benefit from reduced fuel costs following the latest fuel price review by the Zimbabwe Energy Regulatory Authority (ZERA), which has pushed both diesel and petrol blend prices below the US$2 per litre threshold.
In a statement released on Friday, ZERA announced that Diesel 50 will retail at US$1.99 per litre while Blend E20 will sell at US$1.98 per litre. In local currency, diesel is pegged at ZWG53.26 per litre, with Blend E20 priced at ZWG53.00 per litre.
The revised prices took effect on June 19 and will remain in force for the next two weeks.
The latest reduction comes amid improving conditions on the international oil market following the reopening of the Strait of Hormuz, a key global shipping route that had experienced disruptions due to heightened tensions in the Middle East.
The earlier instability had triggered sharp increases in crude oil prices worldwide, forcing Zimbabwe and many other countries to adjust fuel prices upwards in order to maintain supplies.
Energy and Power Development Minister July Moyo recently indicated that Government was committed to ensuring that consumers benefit from declining international oil prices while safeguarding fuel availability throughout the country.
Following the global supply shock, authorities implemented several measures aimed at cushioning consumers from rising fuel costs. These included maintaining strategic fuel reserves, reviewing fuel taxes and increasing ethanol blending levels from E5 to E20.
The latest ZERA review suggests that those interventions, combined with easing international crude oil prices, are beginning to yield positive results for consumers.
Lower fuel prices are expected to bring relief to transport operators, farmers, mining companies and manufacturers whose operations are heavily dependent on fuel. Transport players alluded reduced fuel costs could also help moderate transport fares and ease inflationary pressures across several sectors of the economy.
In its advisory, ZERA reminded operators that the national blending ratio remains at E20 and that fuel service stations may sell below the prescribed prices depending on their commercial advantages. Retailers are also required to prominently display fuel prices in line with fuel pricing regulations.
Consumers are optimistic that continued stability on global oil markets could result in further reductions during future fuel price reviews.
The latest adjustment provides much-needed relief to households and businesses navigating a challenging economic environment.
