Govt urged to review fuel taxes

STAKEHOLDERS have called for Government intervention after fuel prices went up twice in one week as this might result in a potential commodity price increases.

Companies are finding it hard to maintain their costs and may be forced to shift this burden to the consumer.

Fuel prices had risen significantly on the global market in the wake of Russia's special military operation in Ukraine, which had affected supply trends as the former was the second biggest producer of petroleum products in the world.

Dzivaresekwa legislator Mr Edwin Mushoriwa said it was time the Government reviewed downwards the level of taxes and levies imposed on fuel to cushion the public.

"The various taxes and levies contribute approximately 30 percent to the price of fuel so isn't it possible to review them downwards?" he asked.

Tobacco Association Zimbabwe president, Mr George Seremwe expressed concern over the increase which is going to affect the profitability of tobacco production.

"As farmers we are very much worried of the escalating prices of fuel which has been caused by the crisis in Ukraine and we think that is going to affect our profitability of tobacco production."

"Fuel is one of our major inputs in the value chain. We need fuel for the transportation from the fields to sheds, and from floors to market we also use fuel.

"We are very much worried about the charge from transporters, very soon because we will be transporting our tobacco, this will have an impact on our profits," he said.

Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said the Russia-Ukraine war was set to negatively impact the global economy.

"It should be borne in mind that Russia is a power house with the ability to retaliate sanctions to the detriment of supply of goods and services."

He warned consumers to be ready for anything as commodities prices might escalate not because of business operators profit making, but direct and indirect war effects.

"Basic and non-essential goods will jump as fuel and gas prices shoot against declined supply.

 "Air and sea cargo fees have risen sharply yet the war is only in its 13th day," he said.

 Chairman of the Zimbabwe Passenger Transporters Organisation Dr Sam Nanhanga said the fuel price hike has negatively impacted on their business.

"Our operations have also been affected by the price hike and we might be increasing our fares because we need to remain in business," he said.

Motorists have called for Government intervention following the increase of fuel prices.

John Makondo, a taxi driver said: "the business is already low and We can't even risk increasing the taxi fees because already business is not going well."

On Wednesday, Minister Energy and Power Development Zvemu Soda said: "Zimbabwe imports almost all of its fuel requirements. Any increase in the price of oil on the international market therefore translates into an increase in fuel prices in the country.

 "Occasioned by the conflict between Russia and Ukraine, supply of the petroleum products has been constrained, resulting in an increase in the FOB prices," he said.