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No fuel price increase - Zera

by Ndou Paul
21 May 2019 at 09:03hrs | Views
THE Zimbabwe Energy Regulatory Authority (Zera) has dismissed reports on fuel price increases.

Zera says the recent regulations will not result in the increase in the price of fuel but were meant to provide a price cap within which the prices should be set.

The Energy and Power Development ministry last week gazetted the Petroleum (Fuels Pricing) Regulations 2014, which would apply to fuel prices in relation to petroleum products at wholesale and retail levels.

Zera said, "The Petroleum Industry is advised that the prices of fuel have NOT changed and operators are expected to continue selling fuel to the market as is expected of them.

"Any operator found hoarding fuel will face the full wrath of the law. The Zimbabwe Energy Regulatory Authority (ZERA) and the Zimbabwe Republic Police (ZRP) Officers have been deployed M all the towns and cities to ensure compliance."

Below is the notice from Zera

Award-winning journalist, Hopewell Chin'ono, earlier revealed that fuel dealers and the Zimbabwe Energy Regulatory Authority are locked in talks about fuel prices.

Dealers are reported to have stopped selling fuel after the RBZ announcement removing the 1 to 1 fixed exchange rate for fuel dealers.

In a paper circulating on social media dealers have proposed new prices of RTGS4.96 for petrol and RTGS4.88 for diesel.

Commenting on the development Professor Jonathan Moyo said, "FUELNOMICS after RBZ  ditched the 1:1 exchange rate and liberalised the interbank market. The fejafeja gymnastics won't work with forex from ponzi schemes, until there's confidence for investors & businesses to grow forex inflows through export earnings."

"The most predictable response is for the government to cut taxes on fuel. Cutting taxes will mean the fuel price doesn't go up as much as it ordinarily would have gone up. But it would hurt Mthuli's mantelpiece achievement of "budget surplus," added Newsday's Nqaba Matshazi.

Source - Byo24News