Chronicle Editor
FUEL prices are known the world over to have an effect on the prices of goods and services. They are an important determinant in the costing of a number of products globally as they influence efficiency in the movement of goods.
Economies are, therefore, responsive to the movement in the global fuel prices.
In Zimbabwe as in many other countries, the rise in fuel prices has always been met with an increase in the prices of basic commodities and there is nothing wrong with that. It should be like that anywhere. It is an economic situation where the costs are passed to the end user or the consumer so that the business remains profitable.
In cases where there is a reduction in fuel prices, economic market forces dictate that the prices of goods and services should also respond with a reduction that is in tandem with the obtaining fuel price so that a semblance of economic stability is maintained, but that economic principle seems not to work in Zimbabwe.
The recent fuel price increases saw transporters increasing fares while supermarkets had also hiked prices with haste — some with a margin that is way above the fuel increase adding a burden to the already struggling working class.
However, a few days ago the prices were brought down courtesy of the Government intervention and it is our observation that the recent reduction in the prices of fuel by US8 cents a litre from $1,67 to $1,59 for petrol and $1,68 down to $1,60 for diesel after Government tax cuts has not yet been responded to by businesspeople who had hiked their goods and services on the backdrop of the rise in global fuel prices caused by a shift in supply chains.
While we applaud the Government for its intervention, one would also have expected the businesspeople to respond to the reduction of fuel prices with the same swiftness they responded with when the prices were hiked. That was not to be.
And we take this opportunity to implore businesspeople to at least follow basic business principles and to have a semblance of sincerity in their dealings.
The continued hiking of prices can no longer be justified. The intervention by the Government which promised to reduce tax per each litre was done in the spirit of easing life for the majority of the country’s citizens knowing fully well the effects of fuel hike to the ordinary person.
It, therefore, becomes a tragedy of the common people when the business sector decides to conspire and not follow the market forces, but do as they please.
While it is appreciable that every business is there to make money, to make a profit, it is an unacceptable business practice to profiteer.
Profiteering is a practice or situation where a business seeks to make excessive, unjust or unfair profits and this has been the case in Zimbabwe where businesspeople have been increasing prices on the basis of speculation.
Those in the retail sector and the transport business have been in the habit of unjustifiably increasing prices willy-nilly.
We further take this opportunity to call on the Government to increase the Zupco fleet that is growing, but is still not able to cope with the demand, especially now when schools have opened and things are going back to normal after Covid-19 inspired shutdowns.
This has given a chance to pirate taxis and transporters not registered with Zupco to force people to pay an arm and a leg to and from work against paltry earnings.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said they were happy with the new fuel price structure.
He said he was quite positive that there will be changes in the value chain as businesses respond to the reduction. We have not yet seen the positive changes, but we hope they are coming soon.
We, therefore, urge retailers not to take advantage of consumers, but to exercise restraint and complement Government efforts in cushioning the lives of ordinary people.
Online Reporter