Govt cushions fuel consumers

Harare (New Ziana) – Petrol blending will go up to E20 by the end of this month which will result in consumers saving up to US$0.07 per litre, while a fuel price stabilisation fund will be set up to provide a further cushion, Cabinet resolved on Tuesday.

Russia’s special military operation in Ukraine has sparked global fuel price increases over the past few months.

In light of that, Cabinet has moved to cushion citizens through a number of measures including increasing the blending ratio.

“In the immediate term, Cabinet has adopted the following strategies; resumption of petrol blending at E10 from 25 April 2023, which has reduced the pump price of petrol by US$0.04 per litre. The blending will go up to E20 by end of May 2023, which will lead to a higher reduction in the price of petrol by US$0.07 per litre,” Information Publicity and Broadcasting Services Minister Monica Mutsvangwa said.

“Government intends to set up a Fuel Price Stabilisation Fund, to cushion consumers from sharp increases in fuel prices. Discussions are on-going on the modalities and timing of the Fund. Government will come up with measures to stabilize and ensure a consistent supply of fuel.”

Mutsvangwa said the increased uncertainty in fuel supply had spurred the government into action.

“Government has, therefore, increased efforts to improve the Strategic Fuel Reserve, with US$40 million worth of fuel having been procured in the last six months.

“The intention is to maintain at least a 30-day stock cover, which, at the current consumption levels, translates to 150 million litres. This fuel would be released onto the market to plug supply gaps or to stabilize prices,” she said.

In Zimbabwe, petrol currently retails at US$1.64 per litre while diesel costs US$1.71.
New Ziana