Online Reporter
Mukudzei Chingwere, [email protected]
GOVERNMENT’S fuel price mitigation measures will remain in place as the country continues to monitor supply stability and cost pressures triggered by disturbances in the Middle East, Finance and Economic Development
Minister Professor Mthuli Ncube has said.
Speaking on efforts to protect Zimbabweans from rising global fuel prices, Prof Ncube said measures introduced in
March are still necessary to ensure both steady availability of fuel and containment of pump prices.
He said the policy package sought to cushion consumers and businesses from abrupt changes in international markets, particularly where geopolitical tensions have disrupted shipping and logistics.
Government, he said, had put in place a raft of interventions to promote continuous fuel supply and to reduce the likelihood of pump prices increasing in a manner that would further worsen the cost-of-living challenges facing households.
The measures, introduced as part of a wider strategy to stabilise essential commodities, were meant to keep fuel flowing across the economy while preventing unnecessary price spikes at service stations.
While conceding that the conflict in the Middle East has had an impact on Zimbabwe, similar to effects experienced by many countries worldwide, Minister Ncube expressed confidence that the Government’s interventions have begun to deliver results.
“The war in the Middle East has affected us just like any other country around the world in the two areas of the availability of supply and also the pricing,” said Minister Ncube.
“On the availability of supply, we have put in place certain structures that have ensured that we have fuel flowing into Zimbabwe without much disturbances. So, the issue really is on the issue of pricing where we have seen an increase in the issue of fuel price.
“But we have taken measures to cushion our citizens from this increase in prices. These measures border around reducing some of the taxes, some of the levies that were on fuel and this has gone a long way in ameliorating this increase in pricing.
“As I speak, we have resolved to continue with the current price levels while we continue monitoring things,” said Minister Ncube.
He said the focus is not only on reducing the immediate price pressures, but also on securing reliable fuel
availability so that shortages do not emerge even when external conditions remain volatile.
The Government is also expected to continue closely monitoring developments in oil markets and supply chains and to adjust implementation where necessary to safeguard Zimbabwe’s energy security.
The Government has approved raising ethanol blending in petrol from E5 to E20, and local ethanol producers are on record that if the market were using E20 rather than E5, motorists would be saving roughly US$0,18 per litre at the pump.
Following the price containment measures by the Government fuel prices are still above US$ for both petrol and diesel, a cost economists fear will drive inflation and push up the cost of basic commodities and the overall cost of living.
The fuel supply crisis is not confined to Zimbabwe, it is part of a wider, global problem affecting many countries’ energy security and daily life.
