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Price of fuel increases

by Staff reporter
05 Jun 2020 at 08:27hrs | Views
THE price of fuel has been marginally increased with effect from today. Zimbabwe Energy Regulatory Authority (Zera) announced the new prices yesterday in line with Statutory Instrument 270 of 2019.

The SI states that new fuel prices are effected on the 5th of every month taking consideration to previous month's international market prices.

The maximum pump price for diesel in Harare is now $24,93 per litre and $28,96 per litre for blend. Zera advised that fuel dealers that can charge below the stipulated prices if it is favourable to them. While the energy regulator announced the prices for fuel for Harare, fuel costs vary per province as transportation costs are factored in distribution.

Areas in Matabeleland region always have a higher price for fuel due to the factored transport cost. Prior to the latest price hikes the maximum pump price for diesel was $20,84/litre in Harare and $21/litre for blend while in Bulawayo diesel sold between $21,59 and $22,55/litre while petrol sold for between $21,76 and $23,30/litre.

The new prices however remain lower than those charged for the same commodities in foreign currency. Service stations selling fuel in forex in Bulawayo charge between US$1 and US$1,05/litre for diesel and petrol, translating to about $55/litre using the parallel market rate.

The disparity has resulted in most motorists shunning forex service stations opting for fuel sold in local currency. Many who have access to foreign currency opt to change their money to local currency and endure long hours in queues as opposed to buying the commodity in forex. Only those who prefer the convenience of not spending long hours queueing for fuel buy at forex service stations.


Source - chronicle

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