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Munesu Nyakudya Business Reporter—
Government plans to develop a properly structured fuel pricing template to protect consumers from fuel companies who are failing to reduce prices in line with global oil price movements. Speaking at the petroleum sector pricing study stakeholder workshop yesterday, Ministry of Energy and Power Development Permanent Secretary Mr Partson Mbiriri said Government had noted with concern the differentials in fuel pricing on the local market.
He said competition at retail level is not realistic as the pricing structure continues to fluctuate. “Government has noted huge differentials in fuel prices; some as high as 10 cents per litre between service stations in Harare. He said claims have however been made that some fuel industry players have been manipulating prices taking advantage of their influence in the market. Mr Mbiriri said such influential players are holding on to high prices even when they know that lowering prices would still be feasible to their businesses.
“Prices are expected to be two cents or three cents higher in locations further away from Harare because of the higher costs arising from the longer distribution distances from Msasa,” said Mr Mbiriri. He said Government expects local fuel companies to quickly respond to movements in international oil prices and always operate in good faith for the good of consumers.
Mr Mbiriri said fuel prices have ripple effects on the pricing of other commodities as it is a major cost driver in productive sector of economy. He said Government will ensure that all stakeholders in the fuel industry are protected from the vagaries of monopolies. “The intention is not to disadvantage any stakeholder by this exercise. I also appeal to stakeholders to be cooperative and thankful at all times”.
Online Reporter