Fuel retailers reduce prices

Harare Bureau
SOME local fuel retailers have reduced diesel and petrol prices in line with the falling global oil prices.
A survey by our Harare correspondent yesterday established that Sakunda Energy and Redan Petroleum reduced fuel prices on Wednesday by at least three cents per litre.

Diesel, which used to cost $1,43 per litre, is now selling at $1,40, while petrol now costs $1,51 per litre from $1,54. Sources at Sakunda Energy and Redan Petroleum said they reduced the prices following trends on the global scene.

“We’ll continue reviewing the prices according to the global price fluctuations,” said a source at Sakunda. “The price of fuel went down on the international scene recently and we’re reacting to that decrease by also adjusting our prices downwards.”

Consumers who bear the burden of high fuel prices through increased cost of transport yesterday welcomed the development.

A number of motorists said the reduction in the fuel price should also reflect on prices of other commodities.

A Harare man Shepered Raza said it was unfair that prices of other goods always went up due to an increase in fuel prices but were never reduced when the fuel prices dropped. “This is positive. We should see this also reflecting on other commodities. When global prices fall it should reflect on the local market,” he said. “Hopefully other suppliers are going to follow suit in adjusting fuel prices.”

Brenda Taruvinga said retailers should always adjust prices according to the international market trends.

“A lot of goods are overpriced in Zimbabwe,” she said. “Retailers should not over charge us, but should follow the market trends.”

Business magazine, Bloomberg, recently reported that crude oil prices had fallen to a four-year low due to increased output from the United States and a decline in global demand.

Data from Bloomberg indicates that the value of West Texas Intermediate (WTI) crude, which is used to benchmark global prices, dropped to $68,56 per barrel in Monday’s trading on the New York Mercantile Exchange.

The International Energy Agency predicts that the decline in global oil prices will slide into 2015 due to increased production from the US.

Other reports predict that the drop in crude prices could go to as low as $40 per barrel.