Drop in fuel prices to ‘slow down price increases’

Michael Makuza, Business Reporter
THE reduction in fuel prices by the Government continues as the Zimbabwe Energy Regulatory Authority (Zera) reviewed prices effective on Tuesday this week.

In an update, the regulatory authority reduced diesel price by two cents to $1,74 a litre from $1,76.
The petrol price has also decreased by one cent to $1.60 a litre from $1,61.

On Wednesday last week, Zera reduced petrol prices by nine cents to $1,61 from $1,70 per litre and pegged diesel at $1,76, down from the previous $1,80.

Economic commentators said the continued drop in fuel prices is likely to slow down the rate of increase in pricing of goods and services, which will give significant relief to consumers.

Zera also announced that the public and operators are advised that the blending ratio remains at 20 percent ethanol.

In March, President Mnangagwa directed the Government to consider domestic remedies, including a reduction of duty and surcharges on petroleum products, to control the price of petroleum.

The Government has continued to explore measures to reduce the taxes further.

Crude oil, which is the baseline raw material for most petroleum products, rallied to historic prices this year following the conflict in Eastern Europe, peaking at US$123 per barrel in March, before coming down to around US$100 recently.