Online Reporter
Business Reporter
The Zimbabwe Energy Regulatory Authority (ZERA) has increased the price of both diesel and petrol blend, effective 18 March, citing mounting cost pressures and the need to prevent fuel shortages and arbitrage.
In a notice released today (Wednesday), the regulator announced that Diesel 50 will now retail at ZiG52.19 per litre (US$2, 05), while blended petrol (E5) will cost ZiG55, 13 per litre (US$2, 17).
In a statement accompanying the price review, the Government acknowledged the financial strain on consumers but stressed that the adjustment was necessary to maintain supply stability.
“While Government ensures security of fuel supply, ZERA notices that the cost pressures are piling up and these require that prices be reviewed for two weeks to avoid fuel shortages and arbitrage,” reads the statement.
Authorities moved to reassure the public that despite global uncertainties, the nation’s fuel supply remains secure.
ZERA confirmed that there are sufficient stocks in the supply chain, from the pipeline in Beira to inland storage facilities, providing more than three months’ cover.
“Working with oil traders, the Government is opening up supply routes not affected by the current conflict in the Middle East,” the statement added.
In a move aimed at bolstering supply, the Government has with immediate effect approved the importation of diesel by road, supplementing the existing pipeline and rail routes.
This decision is intended to open up new avenues for fuel delivery and ensure that service stations remain stocked.
State-owned entities Petrotrade and the National Oil Infrastructure Company (NOIC) are expected to play an active role in this distribution drive.
Officials also highlighted that the new diesel price was set with consideration for key economic sectors.
“The new price of diesel has been set with a view to mitigate the impact of the increase on the mining, agriculture, haulage services and passenger transport sectors,” the statement noted.
Government further emphasised that the current pump price represents an intervention, claiming that without it, diesel would have cost US$2, 20 per litre. “Government will endeavour to keep the price of diesel lower than what it ought to be,” the regulator assured.
