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Oliver Kazunga, Senior Business Reporter
THE Zimbabwe Energy Regulatory Authority (Zera) has reviewed upwards the price of fuel with immediate effect citing increasing oil prices on the international market.

Under the latest pricing structure, the pump price for diesel is now $218,01 per litre or US$1,68 per litre while petrol is pegged at $216,78 per litre and in hard currency at US$1,67.

In a statement, Zera said the prices have been set in accordance with the increasing oil prices on the international market which the authority is continuously monitoring.

“Please be advised that there has been a review of prices for diesel and diesel blend for March 2022. Prices have been set in accordance with increasing oil prices on the international market.

“The public and operators are advised that the blending ratio remains at E0. 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,” it said.

Since January last year, there has been increases in the Free on Board (FOB) prices for petrol and diesel and this has had a knock-on effect on the pump price of fuel.

FOB refers to the costs of shipping the product. Economic commentator Dr Cornelious Dube said the latest fuel price increase on the international market has been triggered by the Russia-Ukraine war especially given that Russia is among the top four countries in the world that produce oil.

“The Russia-Ukraine war is the one that is causing all this fuel price that we are seeing now especially given that they cut off supply from Russia.

“The challenge is going to be compounded especially given the fact that for example, all suppliers require fuel, suppliers are also going to factor in fuel in their pricing; and you will also discover that their operation costs as well involve fuel and they are going to factor that,” he said.

“We are going to see this impact directly in the inflation component for transport and fuel in the March figure for inflation.”
Dr Dube said this is now a challenge particularly to the targets that the monetary authorities had set.

The monetary authorities project the year will end with annual inflation at 35 percent.

“I think we need to go back to the drawing board now in terms of setting up new realistic targets,” he said. — @KazungaOliver