Business / Local
Fuel price goes up
04 Sep 2012 at 05:21hrs | Views
THE prices of fuel have gone up by between six cents and 10 cents a litre.The increase, effected at the weekend, has been attributed to rising prices on the international market.
A survey by the state media revealed that the pump price of petrol was now between $1,51 and $1,58 per litre depending on location, while diesel is being sold at between $1,37 and $1,42 per litre.
Before the latest round of increase, the price of petrol ranged from $1,38 to $1,49 per litre, while that of diesel was $1,34 to $1,38 per litre.
Economic analysts said fuel affected all sectors of the economy as a result the increase might result in the prices of products being increased slightly.
Economic commentator Dr Eric Bloch said the fuel price increase would affect the transport sector as it will see increase in the cost of transporting people, retail goods and manufacture of products.
"The increase of fuel prices will certainly attract an increase in inflation," said Dr Bloch.
Economic analyst Dr Davison Gomo said the increase would affect all sectors of the economy.
Another economic analyst Mr Tawanda Sitemere said consumers should brace themselves for a chain of price increases.
"The trend of rising fuel prices is most likely to have a ripple effect on the local economy as prices of other commodities have a tendency to follow suit.
"Most people will try recovering their fuel costs by simply pushing their prices higher in line with the increasing cost of fuel," he said.
However, another analyst Mr Munashe Zondiwa said price increases would be marginal if any.
"There might not be an immediate ripple effect as such but this normally drives up the rate of inflation.
"The country's inflation has been rather subdued meaning to say that even if prices are to increase it will be minimal without much of a significant effect on the consumers.
"The issue is only that we do not know how prices will shape out on the international markets," he said.
Latest statistics indicate that annual inflation in Zimbabwe has held steady at 3,94 percent making the country one of the low inflation economies in the sub-Saharan region.
A survey by the state media revealed that the pump price of petrol was now between $1,51 and $1,58 per litre depending on location, while diesel is being sold at between $1,37 and $1,42 per litre.
Before the latest round of increase, the price of petrol ranged from $1,38 to $1,49 per litre, while that of diesel was $1,34 to $1,38 per litre.
Economic analysts said fuel affected all sectors of the economy as a result the increase might result in the prices of products being increased slightly.
Economic commentator Dr Eric Bloch said the fuel price increase would affect the transport sector as it will see increase in the cost of transporting people, retail goods and manufacture of products.
"The increase of fuel prices will certainly attract an increase in inflation," said Dr Bloch.
Economic analyst Dr Davison Gomo said the increase would affect all sectors of the economy.
Another economic analyst Mr Tawanda Sitemere said consumers should brace themselves for a chain of price increases.
"The trend of rising fuel prices is most likely to have a ripple effect on the local economy as prices of other commodities have a tendency to follow suit.
"Most people will try recovering their fuel costs by simply pushing their prices higher in line with the increasing cost of fuel," he said.
However, another analyst Mr Munashe Zondiwa said price increases would be marginal if any.
"There might not be an immediate ripple effect as such but this normally drives up the rate of inflation.
"The country's inflation has been rather subdued meaning to say that even if prices are to increase it will be minimal without much of a significant effect on the consumers.
"The issue is only that we do not know how prices will shape out on the international markets," he said.
Latest statistics indicate that annual inflation in Zimbabwe has held steady at 3,94 percent making the country one of the low inflation economies in the sub-Saharan region.
Source - New Ziana
