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Brighton Gumbo Business Reporter
LIQUEFIED Petroleum (LP) gas dealers have increased the price of the commodity by 150 percent to $5 per kilogramme from $2, capitalising on prevailing supply shortage. Consumers were left stranded when gas filling outlets ran out of the commodity in what was attributed to annual shutdown by the South Africa based supplier to facilitate the servicing of equipment.
More people have turned to using gas as an alternative to relatively expensive electricity and incessant power cuts.
Indications are that several dealers are now sourcing gas from neighbouring Mozambique and Mauritius.
A snap survey conducted by Business Chronicle revealed most gas dealers had increased the price by Friday morning.
The operators cited huge costs incurred in importing the product.
Zimba Gas owner, Nyararai Gomba of Bulawayo, said the increase was necessitated by demand and supply factors.
“I procured my last consignment from Mutare, which was costly. Considering that the supplier increased the commodity price and transport costs and that I had to pay rent and workers at the same time, I’m forced to put my selling price at $5 to remain profitable,” he said.
Gomba feared most gas dealers in the city would close unless the supply situation improves.
He claimed that most bulk suppliers give priority to Harare traders who pay in advance and order huge volumes.
Value Gas director, Morris Masike said his company has turned to Mauritius for supplies, which is more expensive.
“To deliver the commodity to the people, we’ve opted to buying gas from Mauritius, which is very expensive. We now have to pay duty at the border and transportation of the commodity all the way from there.
“This has compelled us to raise our prices so that we don’t run a loss,” he said.
Masike said they hoped the situation will return to normal when their traditional supplier, South Africa, restores business this week.
He said the shortage has also affected supplies to regional countries such as Zambia and Botswana.
Several buyers were seen turning away from gas dealers in the city centre with empty gas tanks after complaining of the new price.
Joseph Dube, a resident from Emganwini, said $5 was too high and not affordable.
“The pricing is ridiculous. How can I pay $5 for a kilogramme when last week it was $1.75? These people are taking advantage of the situation to maximise profits,” he fumed.
Senziwe Ncube from Gwabalanda also complained.
“I can’t afford to buy gas at such a price. I would rather pay Zesa,” she said.
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