By Nkosana Dlamini
The Zimbabwe Energy Regulatory Authority (ZERA) has announced yet another round of diesel and petrol price increases, heightening fears of similar hikes in prices of consumer products.
According to a Wednesday statement by ZERA, a litre of diesel has now been set at US$1.76 or ZW$550.59 while a similar quantity of petrol is now pegged at US$1.73 or ZW$539.56.
“Please be advised that there has been a review of prices for diesel and blend with effect from 7 June 2022,” read the statement by ZERA.
ZERA added, “The public and operators are advised that the blending ratio is now at E15. Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided for by the fuel pricing regulations.”
The last such fuel price increase was on May 20 this year when diesel went up to US$1.74 a litre, up from US$1.71 while the price of petrol (Blend – E15) was increased to US$1.68, up from US$1.64 per litre.
Zimbabwe has seen continued fuel price increases since the beginning of the year with the ripple effects often reflected in similar increases in prices of goods and services.
In past comments, government has attributed fuel price increases to the ongoing tension between Russia and Ukraine which has triggered international crude oil price increases.
Speaking at a media conference earlier this year, Energy and Power Development Minister Soda Zhemu said: “Zimbabwe imports almost all of its fuel requirements. Any increase in the price of oil on the international market therefore translates into an increase in fuel prices in the country.
“Occasioned by the conflict between Russia and Ukraine, supply of the petroleum products has been constrained, resulting in an increase in the FOB prices,” he said.
A rapid increase in oil prices on the international market demanded more frequent price reviews compared to when international prices were relatively stable.
“The objective is to ensure that oil companies remain viable which would in turn, ensure that the local market continues to receive adequate supplies of the fuel.
“To that end, petroleum price reviews shall be done on a weekly basis to preserve the price of the products in line with the situation obtaining on the international market,” said the minister.
