Drop in fuel prices stabilises economy Zimbabwe Energy Regulatory Authority

Michael Makuza, Business Reporter
THE continued drop in fuel prices is stabilising the economy, a development that has seen prices of commodities remaining stable for several months, economists have said.

The Zimbabwe Energy Regulatory Authority (Zera) reviewed the prices four times in November, with the cost of diesel remaining unchanged on three occasions in US$ component and going up by a few cents in local currency.

The same goes for petrol as the price in US$ changed within a range of one cent and five cents while increasing and decreasing marginally in local currency.

On Wednesday, Zera reviewed fuel prices and pegged the retail price of the blend at US$1,54 or ZW$1 008,57 down from US$1,59 or ZW$1 028,55.
For diesel, the latest prices are set at US$1,70 or ZW$1 113,03 per litre down from $1,73 or ZW$1 116,94 per litre.

Business analyst Mr Morris Mpala told Business Chronicle that the stability being witnessed in fuel pricing is commendable as it offers stability in the pricing of goods.

Mr Morris Mpala

“Fuel prices have been stable and offer further stability on the pricing of goods. It is controlling prices of goods in general as other services increase their prices,” he said.

Another economist, Dr Prosper Chitambara said the country is benefitting from the downward of fuel prices globally because of concerns and fears that the global economy is in a recession.

“As Zimbabwe, we have also benefitted from that and it is good for the economy. It enhances competitiveness in the economy and it helps to further buttress the stability that we have witnessed over the past few months,” he said.

In May this year, the Government came up with macro-economic policy measures to boost confidence and reduce inflation.

Among the measures was the introduction of the willing buyer-willing seller system for a market-determined exchange rate and the continuation of partial dollarisation.

The Government later introduced gold coins, which have played an immense role in sanitising the market.

This week, the Zimbabwe National Statistics Agency (ZimStat) said the month-on-month inflation rate for November dropped to 1,8 percent after shedding 1,4 percentage points on the October rate of 3,2 percent.

Inflation is now at its lowest since April last year and the second lowest for more than three years, as the market-led and effective policy interventions by the Government and the Reserve Bank of Zimbabwe continue to succeed in holding prices down.

You Might Also Like

Comments