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Herald Reporter
The price of petrol has fallen again by US5c a litre to US$1,53 a litre although diesel remains at US$1,74 a litre with the regulator Zera setting the new maximum prices on Thursday.
The four price reductions in recent weeks have seen petrol prices falling US24c a litre or almost 14 percent since late June and that for diesel falling by US14c a litre or 7,5 percent.
The Zimbabwe Energy Regulatory Authority sets maximum prices of petroleum products regularly using a formula that builds on the landed cost of petrol and diesel and then applies the taxes, pumping costs, other transport costs, and mark ups for the fuel companies and the service stations.
At the moment the global surge in fuel prices at the end of June, that basic landed cost, has been abating. In addition the Government intervened in June by cutting duties, the tax component, to try and contain the price rises. At the same time extra supplies of ethanol allowed the ethanol percentage for blend petrol to rise to 20 percent, which contained petrol prices further as ethanol is cheaper than petrol.
Prices at the moment with the latest Zera maximums at the same as at the end of May for diesel and thanks to the increase in the ethanol content considerably better for petrol blend.
Since the end of June the petrol blend price has dropped Thursday’s price notice also set maximum prices for fuel in Zimbabwe dollars at $892,35 a litre for the E20 petrol blend and $1014,01 for diesel. As with all legal currency conversions Zera uses the latest interbank rate.
The Zera prices are the maximum that a retail service station can charge, but Zera makes it clear that suppliers can charge less and encourages them to do so.
Online Reporter