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Mnangagwa's govt warned over continued fuel hikes

by Staff reporter
11 Sep 2021 at 12:54hrs | Views
AN economist Prosper Chitambara has warned the government against continued fuel price increases highlighting that such acts are a thorn in the flesh of current efforts to stabilise the economy.

He made the remarks shortly after the Zimbabwe Energy Regulatory Authority (ZERA) increased the prices of petrol and diesel this week.

In a statement Wednesday, ZERA set the maximum pump price of diesel at $11.15 or US$1.34 per litre and petrol at $118.42 or US$1.38 per litre.

The new prices are slight increases from the August 2021 prices which stood at $114.29 or US$1.33 per litre of diesel and $117.07 or US$1.37 per litre of petrol.

"Operators may sell at prices below the cap depending on their trading advantages. Stakeholders are advised that petroleum price releases by ZERA can be verified on the official ZERA website, Facebook or Twitter," said the energy regulator in a statement.

ZERA delayed the reviewing September 2021 fuel prices citing developments taking place in the international oil market.

However, Chitambara warned the continued increases may derail current efforts aimed at stabilising the economy.

"While it is a fact that fuel prices have been significantly increasing on a global scale as the world swiftly emerges from Covid-19 lockdowns, the sad part is that Zimbabwe fuel price increases will be a double edged sword for locals who have endured prices already higher than those of other global players," he said.

Chitambara said the increase fuels was some of the major downsides to the current efforts to stabilise the economy as prices of goods and services are likely to keep increasing since every sector is hinged on fuel.

"The government must urgently see sense in reduced fuel prices as this will go a long way to boost productivity and ultimately increase other sources of revenue for the government."

Source - newzimbabwe