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Ivan Zhakata Herald Correspondent
Two drops in fuel prices since July 18, a 9 percent drop in petrol-blend prices from US$1,77/litre to US$1,61/litre and a drop of 6,3 percent in diesel from US$1,88/litre to US$1,76/litre, have reduced transport and motoring costs in general, commuter omnibus fares on some routes, and eased pressure on prices.
This comes in the wake of serious talks between the Government and manufacturers on pricing formulas, plus some serious action by the authorities on things like pricing according to the black-market exchange rate.
The combination of falling transport costs and the other actions are frequently stabilising prices and there are reports that the odd price has fallen.
Fuel prices were rising regularly across the world including Zimbabwe following rises in crude oil prices as the world came out of Covid-19 reductions followed by the rises generated by the conflict in Ukraine.
Zimbabwe from June, saw Government efforts to limit the rises through duty cuts and other moves, as well as returning the ethanol ratio in petrol to 20 percent and these efforts have now seen the prices fall in the last 12 days.
The business community yesterday applauded the Government for the double reduction saying it will reduce their transportation costs and in some cases reduce the cost of their products which they can then pass on to consumers.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said: “The reduction of fuel prices by the Government is a good move which has resulted in reduced transportation cost price. We are now looking at a reduction in prices of basic goods and some other goods such as cooking oil, sugar and salt among others have their prices reduced.
“We have responded positively and fuel is one key cost driver and the Government has made sure that the price is not only reduced but the fuel is also available. It is something that has to be applauded. We have been having engagements with the Government and we applaud the move.”
Economist Mr Eddie Cross said he was surprised by the decline in fuel prices and by the falling monthly inflation rate for the past month.
“Both indicate that the inflationary aspiration which we have had for the past three months could be coming to end and I hope that is the case. I do not think that the price reductions in the shops are due to anything more than simply a retailer suggesting the prices to accommodate the changes in policy which are taking place in the last couple of weeks following meetings with the Government.”
Mr Cross was referring to the serious talks and the agreements not to use black market exchange rates for goods where auction funds provided the inputs, and other problems being sorted out.
Motorists have also commended the authorities for dropping maximum fuel prices saying they can now travel longer routes with fewer worries of purchasing fuel, stressing both the price reduction and the ready availability of fuel.
Miss Dadirai Muchenje said she was relieved when she heard that fuel prices have been reduced.
“I got depressed when the fuel price was increased because it was close to two weeks when I bought my first car and I thought I was going to fail to manage it. When I heard that the price has been reduced I was very happy and I would like to thank the Government for the directive,” she said.
Businesswoman Mrs Primrose Maunganidze who is in the business of baking and supplying cakes across Harare echoed a sigh of relief saying she could now conduct her business without worrying so much about petrol costs.
“My vehicle is a fuel guzzler; so I was getting worried on how I am going to deliver cakes to my clients. I was about to increase the price of my cakes so that I meet my petrol demands but when I heard that the price has been reduced, I am now maintaining the current price.”
Mr Tafadzwa Magaso echoed the same sentiments and said he was happy with the reduction of petrol prices.
“I am happy that the petrol prices have been reduced. I hope they will remain stable for a longer period,” he said.
Mr Atkinson Karidzamimba concurred with Mrs Maunganidze and said he was also worried as his vehicle consumes a lot of petrol. “I feel relieved because I was about to sell my vehicle or exchange it with a fuel saver as it consumes a lot of fuel but now I have changed my mind because I can maintain it with the current cost of petrol.
An association of passengers has also welcomed the dropping of fuel prices saying it has also resulted in bus fares at least stabilising and falling on some routes.
The association, however, urged the Government to increase Zupco fleets on local routes so that the bus fares remain stable.
Passengers Association of Zimbabwe president Mr Tafadzwa Goliati said although fares to most parts of the suburbs across the capital have remained stable, notable decreases have been seen on the Chitungwiza, Mabvuku, Ruwa, Kuwadzana and Zimre Park routes.
“Fares have remained the same on most routes across the capital but we would like to applaud the Government for reducing fuel prices. We think there is a need to increase the Zupco fleet for bus fares to be reduced because if fuel prices are increased bus fares will also be increased,” he said.
Online Reporter