Government further slashes fuel price

30 Sep, 2022 - 00:09 0 Views
Government further slashes fuel price

The Chronicle

MEASURES being put in place by the Government to keep fuel prices down and cushion citizens from escalating prices of basic goods and services continue bearing fruit with the Zimbabwe Energy Regulatory Authority (Zera) announcing a further reduction on Thursday.

Global fuel prices have been rising since the start of Russia’s special military operation in Ukraine. To cushion consumers, the Government completely removed the fuel levy on diesel while that on petrol was reduced to US4,7 cents per litre, following a spate of increases.

The timely intervention, effected in June, prevented fuel prices from breaching the US$2,00 per litre mark. Blending, at 20 percent, has also helped keep fuel prices down.

Zera said the price of diesel was down by four cents to US$1,70 per litre while petrol was reduced by a cent to US$1,51.

“The public and operators are advised that the blending ratio remains at E20. 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 in a statement.

Government is on record expressing concern that the business sector was not reducing prices for goods and services in tandem with falling fuel prices, among other factors.

Energy and Power Development Minister Soda Zhemu is on record saying the Government expected business to adjust pricing in line with the drop in fuel prices, and stabilised exchange rates, among other factors, to ease the financial difficulties consumers faced.

Energy and Power Development Minister, Soda Zhemu

Fuel prices are a major determinant of pricing in business, and these have been rising much of the year due to the Russia-Ukraine conflict. But since early July, fuel prices have been dropping after the market absorbed the initial shock of the conflict. – New Ziana

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