Business / Local
Fuel price hike justified
25 Dec 2010 at 14:34hrs | Views
THE recent price increase of fuel is justified and unlikely to affect prices, Consumer Council of Zimbabwe executive director Ms Rosemary Siyachitema has said.
In a telephone interview Ms Siyachitema said the increase in the price of fuel was necessitated by the rise in crude oil prices on the world market and people were not supposed to panic, as the increase was just minimal.
"The rise of crude oil on the world market is the one that triggered an increase of fuel in Zimbabwe and the Government, through the Ministry of Energy and Power Development, agreed with fuel companies to raise the cost by a smaller margin," she said.
Ms Siyachitema said the increase in fuel prices was minimal and was not expected to affect prices of most basic commodities.
"The rise of fuel is just minimal that we do not expect prices of basic commodities to rise. The rate at which the local market responds to the increase is uncalled for because even manufacturers of basic commodities have not suffered any costs after the rise of fuel," she said.
The price fuel in most garages rose by eight percent as it is now selling at US$1,33 per litre from US$1,25.
Ms Siyachitema said the hike of fuel was inevitable given the activity on the world market.
"There was nothing fuel companies could have done because the price of this commodity on the world market had been raised," she said.
Ms Siyachitema said she was disturbed by the arbitrary raising of prices under the guise of increased fuel prices.
"As CCZ, we have been taken aback by unscrupulous businesses that hike prices under the guise of responding to the recent fuel hikes as if the increase in fuel had an impact on their business.
Shops should desist from punishing customers who deserve a good Christmas. This is very unfair because their disposal incomes are already low," she said.
A snap survey has shown that prices of some basic products in Bulawayo have gone up by varying margins since the rise in fuel prices. Commodities whose prices have gone up include sugar and cooking oil.
Ms Siyachitema said those who increased their prices were not justified as prices went up by only 10 cents.
"There was a slight increase of 10 cents only and that can not justify any increase of basic commodities. My organisation will not sit on its laurels when greedy businesspeople are shortchanging consumers," she said.
Many retailers effected price hikes on most basic commodities last month when the Government announced that it would give civil servants their bonus and the recent increase is the second one in two consecutive months.
In a telephone interview Ms Siyachitema said the increase in the price of fuel was necessitated by the rise in crude oil prices on the world market and people were not supposed to panic, as the increase was just minimal.
"The rise of crude oil on the world market is the one that triggered an increase of fuel in Zimbabwe and the Government, through the Ministry of Energy and Power Development, agreed with fuel companies to raise the cost by a smaller margin," she said.
Ms Siyachitema said the increase in fuel prices was minimal and was not expected to affect prices of most basic commodities.
"The rise of fuel is just minimal that we do not expect prices of basic commodities to rise. The rate at which the local market responds to the increase is uncalled for because even manufacturers of basic commodities have not suffered any costs after the rise of fuel," she said.
The price fuel in most garages rose by eight percent as it is now selling at US$1,33 per litre from US$1,25.
Ms Siyachitema said the hike of fuel was inevitable given the activity on the world market.
"There was nothing fuel companies could have done because the price of this commodity on the world market had been raised," she said.
Ms Siyachitema said she was disturbed by the arbitrary raising of prices under the guise of increased fuel prices.
"As CCZ, we have been taken aback by unscrupulous businesses that hike prices under the guise of responding to the recent fuel hikes as if the increase in fuel had an impact on their business.
Shops should desist from punishing customers who deserve a good Christmas. This is very unfair because their disposal incomes are already low," she said.
A snap survey has shown that prices of some basic products in Bulawayo have gone up by varying margins since the rise in fuel prices. Commodities whose prices have gone up include sugar and cooking oil.
Ms Siyachitema said those who increased their prices were not justified as prices went up by only 10 cents.
"There was a slight increase of 10 cents only and that can not justify any increase of basic commodities. My organisation will not sit on its laurels when greedy businesspeople are shortchanging consumers," she said.
Many retailers effected price hikes on most basic commodities last month when the Government announced that it would give civil servants their bonus and the recent increase is the second one in two consecutive months.
Source - Byo24
