By Natalie Nyathi
Zimbabwe Energy Regulatory Authority (ZERA) has hiked fuel prices by two cents for petrol and three cents for diesel with effect yesterday (29 December).
“Petrol would now be sold at US$1.50 per litre up from the previous US$1.48,”
According to the local currency, petrol price was raised from ZW$1 007.45 to ZW$1 016.49
ZERA raised the US dollar price for diesel to US$1.65 from US$1.62 per litre. While the diesel price in the local currency was hiked to ZW$1119.82, from ZW$1 094.04 per litre.
In a statement ZERA said:
The public and operators are advised that the blending ratio remains at E5. 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. Stakeholders are advised that the petroleum price releases by ZERA can be verified on the official ZERA website, Facebook or Twitter handle.
The average price of gasoline around the world is 1.28 U.S. Dollars per litre whilst the average price of diesel around the world is 1.32 U.S. Dollars per litre.
GlobalPetrolPrices.com says the differences in prices across countries are due to the various taxes and subsidies for diesel. All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of diesel is different.
Earlier this year President Emmerson Mnangagwa said that duty on fuels must be reduced by US 13 cents to ensure the supply in the market remains stable and affordable.
Fuel prices went up in February this year with the government of Zimbabwe attributing the increase of fuel to the war between Russia and Ukraine. It disrupted global trade as the two countries are the main producers of oil.
However, analysts observed that while the war had an effect on economies worldwide, fuel in Zimbabwe was more expensive when compared to its regional counterparts and this was due to higher taxes. That is when President Mnangagwa directed that the taxes be reduced.