Fuel prices go up

Zimbabwean fuel prices are linked to prices on the international market.

 

A survey yesterday showed that the pump price  of unleaded petrol went up to between $1,45 and $1,50 from between $1,42 and $1,44 while diesel shot to $1,35 up from about $1,32 per litre.
Prices of the environment friendly blended  fuel, E10 also went up from $1,36 to $1,41 per litre and remains the cheapest fuel on the market.
Most fuel dealers confirmed that prices had been increased as a result of increased demand and increases of oil prices on the international market.

Sakunda Holdings public relations manager Ms Sarah Manyengawana confirmed the increases.
“The latest increases were in the region of about $0,02 per litre. You will note that world market prices went up by about 15 percent over the last two months mainly because of the stand off between the West and Iran,” Ms Manyengawana said.

She also attributed the increases to the growing United States economy where there is increased demand for fuel in that country.
“The United States economy was growing as evidenced by their unemployment rate that was reduced from about 9 percent to 8,3 percent in the last three months.
“There is optimism on that market  and an anticipated increase in the demand for  fuel.

“The European bloc appears to have found a solution for Greece and thus the European economy is set to improve creating higher demand for fuel,” she said.
Ms Manyengawana said despite the increases, the price of fuel in Zimbabwe still remained significantly lower than in neighbouring countries such as South Africa, Malawi, Zambia and Mozambique.

An official at Redan Petroleum, another major fuel dealer, said they increased prices last week on Tuesday after oil prices soared on the international market.
“We increased our prices on 13 March after Petro Trade, which imports fuel for us indicated that fuel prices on the international market had risen,” the official said.
Petro Trade is Zimbabwe’s fuel procurement entity but had not responded to questions sent to them.

Petro Trade acting public relations manager, Ms Emelda Kasinama, said she could not comment without clearance from the chief executive officer.
She said they were selling petrol at $1,45 up from $1,44 per litre while diesel was selling at $1,35 up from $1,33 a litre.

Fuel prices have remained stable for the past 11 months because there have been no extra costs. The prices last went up in April 2011 after global oil prices went up.
Prices of fuel were hovering around $120 per barrel driven largely by uncertainty in the oil producing countries such as Libya.

The fuel price increases triggered the increase in price of goods and services.
A survey on the market has indicated that prices of goods and services were yet to respond to the new increases.