News / National
ZERA hikes LPG gas prices
09 Nov 2021 at 05:35hrs | Views
Zimbabwe Energy Regulatory Authority (ZERA) has made an upward review of Liquefied Petroleum Gas (LPG) prices to US$2,05 per kg effective from November 8, 2021.
The liquid petroleum gas industry had remained an open market without price regulations from ZERA, until August this year, when the authority through Section 54 of the Petroleum Act as refined by Statutory 90 of 2021 was empowered to do so.
ZERA in a statement said operators should display the prices at their retail outlets at a prominent place in clearly legible letters.
"Please note that it is permissible to sell LPG at prices below prescribed prices depending on one's trading advantages," ZERA said.
According to the statement, the price in US dollar terms surged 9,6 percent to US$2,05 per kg, up from US$1,87 in October.
In local currency terms, the price of LPG rose by 22,5 percent to $202,78 compared to $165,59 per kg in the previous month.
According to the Petroleum Act, ZERA can review the monthly prices of fuel and LP Gas on or around the 5th of each month.
As the country battles relentless power cuts, domestic power consumers have increased usage of LPG gas as a substitute.
According to ZERA, as of August 2021, a total 20 million kg of gas had been consumed, and was projected at 40 million kg by year end, from an initial target of 60 million kg.
The National Oil Company (NOIC) is working on developing a storage facility for gas, similar to the Masasa fuel depot.
LPG is a product priced in the international market.
The vagaries of the price fluctuations in the global market affect the price of domestic LPG because 100 percent of LPG sold in Zimbabwe are imported from abroad and priced in US Dollars.
As a result, prices of gas keep soaring at the international market with consequential impact on the local market.
ZERA recently announced new fuel prices effective Friday, 5 November 2021.
According to a notice, the energy regulator, pegged the maximum pump price of diesel at $136,44 or US$1,38 per litre while that of petrol was capped at $138,70 or US$1,40 per litre.
The liquid petroleum gas industry had remained an open market without price regulations from ZERA, until August this year, when the authority through Section 54 of the Petroleum Act as refined by Statutory 90 of 2021 was empowered to do so.
ZERA in a statement said operators should display the prices at their retail outlets at a prominent place in clearly legible letters.
"Please note that it is permissible to sell LPG at prices below prescribed prices depending on one's trading advantages," ZERA said.
According to the statement, the price in US dollar terms surged 9,6 percent to US$2,05 per kg, up from US$1,87 in October.
In local currency terms, the price of LPG rose by 22,5 percent to $202,78 compared to $165,59 per kg in the previous month.
According to the Petroleum Act, ZERA can review the monthly prices of fuel and LP Gas on or around the 5th of each month.
As the country battles relentless power cuts, domestic power consumers have increased usage of LPG gas as a substitute.
According to ZERA, as of August 2021, a total 20 million kg of gas had been consumed, and was projected at 40 million kg by year end, from an initial target of 60 million kg.
The National Oil Company (NOIC) is working on developing a storage facility for gas, similar to the Masasa fuel depot.
LPG is a product priced in the international market.
The vagaries of the price fluctuations in the global market affect the price of domestic LPG because 100 percent of LPG sold in Zimbabwe are imported from abroad and priced in US Dollars.
As a result, prices of gas keep soaring at the international market with consequential impact on the local market.
ZERA recently announced new fuel prices effective Friday, 5 November 2021.
According to a notice, the energy regulator, pegged the maximum pump price of diesel at $136,44 or US$1,38 per litre while that of petrol was capped at $138,70 or US$1,40 per litre.
Source - The Herald
