Online Reporter
Nqobile Bhebhe, [email protected]
THE Zimbabwe Energy Regulatory Authority (ZERA) has intensified a nationwide compliance blitz targeting fuel service stations charging above approved pump prices, as Government moves to ensure consumers benefit from the latest reduction in fuel costs.
The regulator said enhanced compliance teams are being deployed across the country to monitor fuel prices and prosecute operators found violating pricing regulations.
The crackdown follows ZERA’s announcement of a downward review of fuel prices, with Diesel 50 now retailing at US$1,99 per litre and Blend E20 selling at US$1,98 per litre.
In local currency, diesel is pegged at ZWG53,26 per litre, while Blend E20 is selling at ZWG53,00 per litre.
The revised prices took effect on Friday and will remain in force for the next two weeks as the Government continues to monitor developments on the international oil market.
Speaking on the latest measures, ZERA chief executive officer Mr Eddington Mazambane told Zimpapers that the authority was stepping up enforcement after receiving reports that some fuel retailers were charging prices above the prescribed levels.
“We have regional compliance officers who enforce issues to do with pricing and quality of fuel products. They always do rounds to check fuel prices,” he said.
“But lately we have had the confusion which happened when we heard that there are some service stations that are selling fuel above announced fuel prices. So we are going to enforce compliance with fuel prices at the same time, prosecute those charging above regulated prices.”
Mr Mazambane said ZERA had maintained a rigorous monitoring framework to ensure that consumers receive fuel at approved prices while safeguarding quality standards throughout the fuel supply chain.
He said they are also closely tracking global fuel market movements following recent volatility caused by geopolitical tensions in the Middle East.
“At the moment we are reviewing fuel prices every two weeks because of the disturbances that happened in the Middle East, but when fuel stabilises, as a country we always review the price of fuel once every month so that we are as close as possible to the fuel market prices,” said Mr Mazambane.
The latest reduction in fuel prices comes amid improving conditions on the global oil market following the reopening of the Strait of Hormuz, one of the world’s most strategic shipping routes.
The earlier disruptions and heightened tensions in the Middle East had triggered sharp increases in crude oil prices worldwide, forcing Zimbabwe and many other countries to adjust fuel prices upwards to maintain stable supplies.
Energy and Power Development Minister July Moyo recently said Government remained committed to ensuring that consumers benefit from declining international oil prices while maintaining adequate fuel supplies across the country.
In response to the global supply shocks, the Government implemented a raft of measures aimed at cushioning consumers from rising fuel costs.
These included maintaining strategic fuel reserves, reviewing fuel taxes and increasing ethanol blending levels from E5 to E20.
Economists say lower fuel prices have a ripple effect across the economy because fuel is a major input cost in sectors such as transport, agriculture, mining and manufacturing.
The latest adjustment is therefore expected to ease pressure on businesses and households that have been grappling with rising living costs.
Mr Mazambane said he was optimistic that the reduction in fuel prices would eventually be reflected in the cost of goods and services that had previously been adjusted upwards.
“One would expect that the fares of commuter omnibuses and other goods and services, which were increased due to the increasing prices, will also have to be reduced,” he said.
“But obviously, we know that prices are sticky on coming down, but we expect that through working together with other Government agencies, we will be able to enforce a reduction in the prices of goods and services in line with the reduction in fuel prices.”
In its latest advisory, ZERA reminded fuel retailers that the national blending ratio remains at E20 and emphasised that service stations may sell fuel below the prescribed prices depending on their commercial advantages.
The authority also reiterated that all fuel service stations are required to prominently display fuel prices in
accordance with fuel pricing regulations.
The latest adjustment is expected to bring much-needed relief to households and businesses navigating a challenging economic environment while reinforcing Government’s broader efforts to stabilise prices and support economic growth.
