News / National
Fuel prices go down, but dealers fail to comply with stipulated prices
13 Jan 2015 at 17:26hrs | Views
Local fuel prices have begun to go down in line with Government's directive to reduce the price of fuel in line with falling international oil prices although dealers have failed to comply with the stipulated minimum prices.
Government gave the oil industry until January 14 to reduce fuel prices to not more than $1,20 and $1,32 for diesel and petrol respectively but a snap survey done by BH24 showed that prices at most service stations are now ranging between $1,44 and $1,49 for petrol and $1,29 and $1,33 for diesel.
Dealers say despite the drop in international oil prices, the price they acquire their product at does not allow for their retail price to go to as low as $1,20 and still make profit.
Total Zimbabwe general manager Dominic Dhanah said industry players would meet with the Minister of Energy and Power Development to discuss this and possibly map a way forward.
"The duties and taxes do not allow the traders to make the normal profit if they reduce prices to the ones set by Government. We are going to hold a meeting today with the Minister of Energy Power and Development to discuss the reasons why the local fuel traders have not reduced prices to that price," he said.
Total Service Stations have reduced the price of petrol from $1, 52 to $1,49 while the price of diesel has gone down from $1, 40 to $1, 38. Sakunda Energy has reduced the price of diesel from $1,37 to $1, 33 and the price of petrol has decreased from $1,47 to $1,44 per litre.
Zuva Service Stations has reduced the price of diesel from $1,36 to $1,29 while the price of petrol has fallen from $1, 40 to $1, 38. Glow Petroleum has not yet reduced the fuel prices charging $1,48 for petrol and $1,36 per litre of diesel.
The price of crude oil on the international market has been on a freefall since June last year were it was around $118 per barrel to $70 per barrel as of December.
In June 2014 the freight on board (FOB)prices at Beira were at 0.88 per litre for diesel and 0.86 per litre for petrol. These have since gone down to 0.57 and 0.52 per litre respectively as at end of December 2014.
Government gave the oil industry until January 14 to reduce fuel prices to not more than $1,20 and $1,32 for diesel and petrol respectively but a snap survey done by BH24 showed that prices at most service stations are now ranging between $1,44 and $1,49 for petrol and $1,29 and $1,33 for diesel.
Dealers say despite the drop in international oil prices, the price they acquire their product at does not allow for their retail price to go to as low as $1,20 and still make profit.
Total Zimbabwe general manager Dominic Dhanah said industry players would meet with the Minister of Energy and Power Development to discuss this and possibly map a way forward.
Total Service Stations have reduced the price of petrol from $1, 52 to $1,49 while the price of diesel has gone down from $1, 40 to $1, 38. Sakunda Energy has reduced the price of diesel from $1,37 to $1, 33 and the price of petrol has decreased from $1,47 to $1,44 per litre.
Zuva Service Stations has reduced the price of diesel from $1,36 to $1,29 while the price of petrol has fallen from $1, 40 to $1, 38. Glow Petroleum has not yet reduced the fuel prices charging $1,48 for petrol and $1,36 per litre of diesel.
The price of crude oil on the international market has been on a freefall since June last year were it was around $118 per barrel to $70 per barrel as of December.
In June 2014 the freight on board (FOB)prices at Beira were at 0.88 per litre for diesel and 0.86 per litre for petrol. These have since gone down to 0.57 and 0.52 per litre respectively as at end of December 2014.
Source - BH24
