Online Reporter
Tapiwanashe Mangwiro
Local motorists and businesses are experiencing a welcome reprieve as diesel prices have steadily declined over the first half of 2025.
From January to June, diesel prices fell by approximately 2 percent, decreasing from US$1,53 to US$1,50 per litre.
This downward trend is largely attributed to easing global oil prices, particularly Brent crude, which has seen a notable decrease during the same period.
In January 2025, Brent crude averaged US$78,19 per barrel. By May, it had decreased to US$66,98, and in June, it further declined to US$65,00. This represents a cumulative drop of about 16,8 percent over six months.
The decline in Brent crude prices is a significant factor contributing to the reduction in diesel prices domestically.
Economist Gladys Shumbambiri-Mutsopotsi explained, “The global oil market has been influenced by several factors, including increased production by OPEC+ countries and a slowdown in demand due to global economic uncertainties.
“These dynamics have led to a decrease in Brent crude prices, which, in turn, has positively impacted fuel prices in Zimbabwe.”
For small business owners, the reduction in diesel prices is more than just a statistic; it has tangible benefits. “As a logistics company, fuel is one of our major expenses,” said Tawanda Nyathi, owner of P&F Haulage Services.
“The decrease in diesel prices over the past few months has allowed us to reduce our operational costs and offer more competitive rates to our clients.”
The decline in fuel prices also has broader economic implications. Lower transportation costs can lead to reduced prices for goods and services, easing inflationary pressures and increasing consumer purchasing power. This, in turn, can stimulate economic activity and growth.
Economists view stable fuel prices as a boon to economic stability, citing several advantages. Ms Chipo Moyo, an economist specialising in energy markets, emphasised that predictable fuel costs provide businesses with greater certainty in planning and budgeting.
“Stable fuel prices reduce operational uncertainties, allowing businesses to allocate resources more efficiently,” she explained. “This stability can lead to increased investor confidence and support economic growth in sectors reliant on transportation and logistics.”
For ordinary citizens like Mr Kelvin Mombe, a Harare-based accountant, the reduction in diesel prices translates directly into tangible benefits.
“With diesel prices going down slightly, I expect to save a bit more on commuting expenses,” Mr Mombe remarked. “Every dollar saved on fuel means more disposable income for essentials and other expenses,” he added, highlighting the immediate impact on household budgets.
However, experts caution that the current trend may not be permanent.
“While the decrease in fuel prices is beneficial, it’s essential to remain vigilant,” noted Ms Shumbambiri-Mutsopotsi. “Global oil markets are volatile, and factors such as geopolitical tensions or changes in production levels can quickly alter the current dynamics.”
