Zera reduces fuel prices

Natasha Kokai and Yeukai Tazira
The Zimbabwe Energy Regulatory Authority (ZERA) yesterday announced a reduction in fuel prices due to the FOB (Free on Board) price movement and the revised duty regime.

Blend which was at $10,01 is now $9,86 while diesel is now $10,25 from $10,32. FOB basically refers to costs involved in shipping the product.

In a statement, ZERA confirmed the decrease in fuel prices.

“The changes in the fuel prices are due to the FOB price movements and the revised duty regime (SI 161 of 2019) applicable from Monday 2 September, 2019.

“Operators may, however, sell at prices below the cap depending on their trading advantages,” read the statement.

ZERA acting chief executive, Mr Eddington Mazambani assured the public on the stability of supply.

“Supplies are stable in the market with both products available in the market,” he said.

Since last month, the Ministry of Finance and Economic Development together with ZERA agreed that the duty set by ZERA at the beginning of the week becomes the amount for the whole week.

In a snap survey, some service stations in Harare’s Central Business District were selling fuel to motorists using the new prices and there were no queues.

Government recently gazetted Statutory Instrument 161 of 2019, Customs and Excise (Tariff) (Amendment) notice 10, 2019, that gives legal effect to the new fuel and alcohol beverages excise duties announced in the 2019 Mid-Term Budget Review statement.

Finance and Economic Development Minister Professor Mthuli Ncube recently said Government had approved the direct fuel imports facility, in order to minimise disruptions to the production cycle due to the fuel supply gaps.