Zimbabwe fuel prices double
Fuel prices in Zimbabwe more than doubled on Sunday after an announcement by President Emmerson Mnangagwa on Saturday evening.
Fuel prices in Zimbabwe more than doubled on Sunday after an announcement by President Emmerson Mnangagwa on Saturday evening.
It was the first time that Mnangagwa has addressed the nation on the growing crisis caused by persistent fuel shortages and Zimbabwe’s worsening economic environment.
“With effect from midnight tonight a fuel pump price of $3.11 per litre for diesel and $3.31 per litre for petrol will come into effect. These prices are predicated on the ruling official exchange rate of 1:1 between the bond note and the US dollar and also on the need to keep fuel retailers viable,” Mnangagwa said at State House in Harare.
Before the increase, diesel cost $1.38 a litre and petrol $1.43 a litre.
Mnangagwa was flanked by deputy president Constantino Chiwenga, agriculture minister Perence Shiri and finance minister Mthuli Ncube.
Ncube said on Friday that the country could expect to have a new currency within a year.
Fuel queues have worsened in the new year. The demand for fuel intensified last week with the start of the school term.
Mnangagwa said some were bent on taking advantage of the fuel shortages to cause unrest and instability in the country.
“Such politically motivated activities will not be tolerated,” he said, indicating that the military would be on the lookout to curb misuse of fuel.
A fuel price increase is likely to spark a further hike in the prices of goods and services.
Mnangagwa warned the government “will not allow” businesses to trigger a new round of price increases.
“Government has decided to grant a rebate to all registered businesses in manufacturing, mining, commerce, agriculture and transport sectors.”
Mnangagwa said the details of the rebate system will be announced in due course.
Other measures Mnangagwa announced to ease the economic pressure include what he said was “a package of measures” to cushion workers until a full review of the cost of living adjustment package due to take effect in April in the context of the current budget.
Talks between the government and its employees broke down on Thursday, after union leaders rejected a 10% pay hike offered by their employer.