Outcry over steep gas prices

THE public has raised an outcry over the steep costs of Liquefied Petroleum Gas (LPG) charged by retailers which are way above the recommended monthly tag set by the Zimbabwe Energy Regulatory Authority (Zera).

The regulatory authority set the retail price of LPG at US$1,86 per kg for February, In January, a kg was $1,85, and $1,84 in December.

However, retailers are charging US$2 and consumers say the price is too high.

Zera, states that it is permissible for retailers to sell LPG at prices lower than the prescribed prices depending on one’s trading advantages.

Retailers have continued to peg their prices way above the stimulated limits, citing challenges in accessing foreign currency for restocking.

In an interview with Chronicle Business, Mr Fortune Ndlovu expressed concern over the increase of gas.

“The prices charged by retailers for a kg are too high. We kindly appeal to the Zimbabwe Energy Regulatory Authority to decrease the amount of gas, especially in local currency.”

However, Mr Hubert Nigel Sibanda, a gas supplier said several factors need to be considered such as the cost of acquiring gas, transportation expenses, and operational costs.

“To set the price, you would need to evaluate your overall expenses, including the procurement and distribution costs, as well as any additional charges imposed by regulatory bodies or local authorities.”

Mr Sibanda added that it is essential to strike a balance between maintaining profitability and providing a reasonable price for customers.

“It may be necessary to conduct a thorough analysis of your financials and market conditions to arrive at a fair and sustainable price per kilogram of gas.”

He added that ZERA should closely monitor the gas supply market to ensure fair and transparent pricing practices and encourage the development and adoption of renewable energy sources as a long-term solution to reduce reliance on fossil fuels.

@Lo7246Lovelyn