Zim fuel costly despite fall in global prices

With the global oil prices tumbling to around $30 a barrel, the People's Democratic Party (PDP) is concerned by high retail petrol prices in Zimbabwe with motorists being forced to fork out up to $1, 40 per litre despite being blended with locally processed ethanol.

As the international prices continue to tumble, most countries have adjusted their prices to match the trends on the international market.

In neighbouring countries, Namibian motorist are paying US$0. 59c per litre, in Tanzania US$0. 75c, in Zambia US$0. 79c, in Mozambique US$0. 89c and in South Africa US$0. 67c.

Globally, Zimbabwe is one of the few countries remaining with high fuel prices.

Motorists in Zimbabwe should be paying less than US$0. 80c per litre of petrol but a cartel of senior Zanu PF politicians led by a presidential hopeful has taken over the control of the fuel pipelines, bulk wholesale and retail business.

Pure greed from the group has seen the fuel prices remaining high causing a negative impact on the economy.

The same Zanu PF politician, who hopes to lead Zimbabwe one day, is also involved in a shady relationship with Billy Rautenbach, the controversial owner of Green Fuels in Chisumbanje whose project was once hailed as going to help lower the price of fuel locally.

This promise like many others under Zanu PF has remained a mirage.

One is then left wondering how this corrupt Zanu PF politician will be able to lead Zimbabwe when he is anti-Zimbabwe.  It is a shame.

The move by the Zanu PF crocodile of creating a monopoly in the supply of fuel in the country has resulted in local prices remaining high and static as in the time when a barrel of oil was selling at US$120 on the international market.

Despite the drastic fall of the oil price on the global market local prices remain the same, much to the greasing of the hands of those in this giant Ponzi scheme which is not beneficial to the economy.

Shareholders in well-known fuel retail companies such as Sakunda and Redan have been elbowed out of business as the Zanu PF cartel moves in to create a total monopoly in the fuel sector and thus keep consumers hostage to their usurious prices.

Local production in most companies remains low because of the high fuel prices, forcing the country to purchase commodities from South Africa, making Zimbabwe a huge supermarket of South African products.

The regulatory authority, the Zimbabwe Energy Regulatory Authority (ZERA) is playing a subordinate role to the Zanu PF politicians and ignoring its role to regulate the procurement, production, transportation, transmission, distribution, importation and exportation of energy derived from any energy source.
 
ZERA is turning a blind eye on the illegal operations of the Zanu PF moguls, short-changing the motorists who are already the victims of Zanu PF misrule in many ways.

ZERA should do its work and ensure that the current pricing model is in line with what is prevailing on the international market as the price of fuel is a key cost driver in production. The adjustment to fuel prices should be done according with the international price.     
Similarly the Competition and Tariffs Commission has failed on its mandate by allowing the same actor to control the pipeline, wholesale and retail outlets in the fuel industry there by creating a monopoly and hence fixing prices very high when they must be lower.

As we mention in our economic blueprint, HOPE, the PDP believes the country is in urgent need of an effective regulatory framework that will strengthen the work of the Competition and Tariffs Commission so that it is able to protect consumers from artificial monopolistic price hikes.

Another Zimbabwe is Possible!!!