Fuel price increase spurs call for efficient transport, logistics

Sikhulekelani Moyo

FOLLOWING the recent announcement by the Zimbabwe Energy Regulatory Authority (Zera) on the increase in fuel prices, the business community has been urged to optimise transport and logistics in order to improve fuel efficiency, reduce the cost of doing business, and maintain prices for goods and services.

Zera announced a 17 percent increase in the price of diesel to US$1,77 from US$1,52, while petrol blend increased by 14 percent to US$1,71 from US$1,56, following geopolitical tensions that have disrupted trade across the globe.

The development poses a threat to businesses in Zimbabwe, where fuel is embedded in almost every operational cost, from distribution and logistics to procurement and service delivery.

Responding to questions from Zimpapers Business Hub, Bulawayo businessman and former Zimbabwe National Chamber of Commerce Matabeleland (ZNCC) chapter vice president, Mr Lious Herbst, said while geopolitical developments are outside the control of local markets, businesses can respond in practical ways by adjusting operational behaviour rather than simply absorbing or passing on the cost increases.

“One of the most immediate and direct indicators and opportunities lies with transport and logistics optimisation.

Many companies operate fixed daily delivery routes regardless of whether vehicles are running at full capacity,” said Mr Herbst.

“During uncertain periods such as now, high fuel prices can be expected, so it would become far more prudent to consolidate freight movements. Transport operators can move toward alternating delivery schedules—one day on, one day off—ensuring that each trip carries a full load.

“This significantly improves fuel efficiency per unit transported.”

Zera said the prices are a result of the Government reducing some of its charges to cushion consumers from steep increases caused by changes in the international market.

The regulatory authority said that without Government cushioning, the actual fuel prices would have been about US$1,90 per litre for diesel and US$1,81 for petrol blend.

Mr Herbst said businesses should focus on maximising return loads, noting that trucks delivering goods to a destination should ideally not return empty.

He said coordinated logistics between suppliers, distributors and retailers can ensure that freight vehicles carry cargo in both directions, effectively reducing wasted fuel consumption within the supply chain.

“This also calls for better demand planning from retailers and service stations. Instead of frequent smaller deliveries, businesses can consolidate orders and increase stock volumes per delivery cycle,” added Mr Herbst.

“While this may slightly increase inventory holding, it reduces the number of delivery trips required and spreads fuel costs across larger quantities of goods, improving overall efficiency.

“Another practical adjustment is the introduction of tiered delivery models. Standard deliveries can operate on the consolidated schedule, while businesses that require urgent replenishment can opt for express deliveries at a premium cost.”

This, he said, allows logistics companies to maintain operational efficiency while still offering flexibility where time-sensitive supplies are required.

Importantly, Mr Herbst said Zimbabwean businesses are no strangers to navigating complex economic conditions, noting that the nation has faced numerous external challenges over the years and has consistently found ways to adapt and move forward.

He said the current fuel price volatility is another example of a challenge largely beyond direct control, but one that can be managed through practical adjustments and improved operational discipline.

It becomes a matter of adapting to the crisis and sharpening operational strategies.

Mr Herbst said when transport operators, wholesalers and retailers coordinate delivery schedules, optimise load capacity and manage demand more efficiently, the entire value chain becomes more resilient.

“In many cases, the operational improvements introduced during difficult periods can prove beneficial in the long term, creating leaner, more efficient systems that continue to deliver value well after the immediate crisis has passed,” added Mr Herbst.