News / Local
Zera slashes gas price by 14,9%
12 May 2023 at 16:31hrs | Views
LIQUEFIED petroleum gas (LPG) users will pay 14,9 percent less this month after the Zimbabwe Energy Regulatory Authority reduced the retail price for the commodity in foreign currency.
The retail price for LPG has been reviewed to US$1,72 and ZWL$1 912,22 per kilogramme.
Last month the regulatory authority set the retail prices of LPG at US$2,02 and $1 911,22 per kg.
"Stakeholders are advised that LPG prices for May 2023 calculated according to Petroleum (Liquified Petroleum Gas Pricing) Regulations 90 of 2021 are as follows, US$1,72 and $1 912,22 per kg," said Zera in a statement.
However, many gas dealers continue to peg their prices above the stipulated prices especially in local currency.
The dealers have said their challenge is that where they get the gas suppliers do not accept local currency and thus it was also hard for them to buy forex for restocking if they sell in local currency.
This has seen some dealers selling the product at above stipulated prices ranging from US$2,30 to US$2,50 regardless of the directions by the regulator. Zera advised operators to display the prices at their outlets at a prominent place in clearly legible letters.
"Please note that it is permissible to sell LPG at prices below the prescribed prices depending on one's trading advantages," it said.
The liquefied petroleum gas industry had remained an open market without price regulations from Zera, until August 2021 when the authority through Sections 54 of the Petroleum Act as refined by Statutory 90 of 2021 was empowered to do so.
The product demand has also increased following electricity shortages, as well as the need to use clean energy to reduce gas emissions into the atmosphere.
The retail price for LPG has been reviewed to US$1,72 and ZWL$1 912,22 per kilogramme.
Last month the regulatory authority set the retail prices of LPG at US$2,02 and $1 911,22 per kg.
"Stakeholders are advised that LPG prices for May 2023 calculated according to Petroleum (Liquified Petroleum Gas Pricing) Regulations 90 of 2021 are as follows, US$1,72 and $1 912,22 per kg," said Zera in a statement.
However, many gas dealers continue to peg their prices above the stipulated prices especially in local currency.
The dealers have said their challenge is that where they get the gas suppliers do not accept local currency and thus it was also hard for them to buy forex for restocking if they sell in local currency.
This has seen some dealers selling the product at above stipulated prices ranging from US$2,30 to US$2,50 regardless of the directions by the regulator. Zera advised operators to display the prices at their outlets at a prominent place in clearly legible letters.
"Please note that it is permissible to sell LPG at prices below the prescribed prices depending on one's trading advantages," it said.
The liquefied petroleum gas industry had remained an open market without price regulations from Zera, until August 2021 when the authority through Sections 54 of the Petroleum Act as refined by Statutory 90 of 2021 was empowered to do so.
The product demand has also increased following electricity shortages, as well as the need to use clean energy to reduce gas emissions into the atmosphere.
Source - The Chronicle
