Govt averts sharp fuel price hike

THE Zimbabwe Energy Regulatory Authority (Zera) has announced a fuel price increase for the second time this month, that will see diesel going up to US$1,88 per litre from US$1,76 and blend petrol selling at US$1,77 per litre from US$1,73.

Zera, however, said the increase could have been more, had Government not intervened. In a statement, Zera said the new revised prices would have been at US$2,01 for diesel, 13c more than the announced price while petrol would have been at US$1,84, 8c more, without Government intervention.

In local currency Diesel 50 was reviewed to $661,73 per litre from $550,59 announced earlier this month and while that for petrol went up to $623,16 from $539,56.

“The public and operators are advised that the blending ratio remains at E15. Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided for by the fuel pricing regulations,” said Zera.

Since January this year, there have been increases in the Free on Board (FOB) prices for petrol and diesel and this has a knock-on effect on the pump price of fuel. The FOB refers to the costs of shipping the product and as a net importer of fuel, any rise in the FOB results in price increases for the product. The Government has had to subsidise the final price to cushion the economy against pressures in international oil prices.