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Harare Bureau
The Zimbabwe Energy Regulatory Authority (Zera) is working on a pricing framework for Liquid Petroleum Gas (LPG) as it moves to protect consumers against arbitrary price hikes by retailers.
The commodity has become an integral energy source for domestic and industrial use. The pricing formula, which is set to be operational soon, is currently being fine-tuned. While the law, through Statutory Instrument 57 of 2014, mandates Zera to regulate gas prices, the industry regulator has largely been leaving industry players to set their own prices. Zera head of petroleum, Engineer Andrew Guri said they are still consulting various stakeholders.
“We had not regularised the sector as it was still in its infancy, the commodity was being used as alternative energy.
“The industry was self-regulating and the prices were determined by retailers. However, we now feel the industry has matured and that is why we need to get involved to protect the public.
“We already have the templates of how it will be regularised and we are now working on a pricing framework that will be used by the industry.”
Although service stations are retailing their product between $10 and $13 per kg, some private players are selling the commodity between $14 and $18 per kg.
Online Reporter