Diesel prices fall slightly

Local motorists and businesses are enjoying a modest but welcome reprieve as diesel prices steadily declined over the first half of 2025.

From January to June, the price of diesel dropped by about 2 percent, easing from US$1.53 to US$1.50 per litre. This decline is largely linked to falling global oil prices, particularly Brent crude, which saw a significant reduction during the same period.

In January 2025, Brent crude averaged US$78.19 per barrel. By May, the price had fallen to US$66.98, and in June it dipped further to US$65.00, marking an overall decrease of approximately 16.8 percent over six months.

Economist Gladys Shumbambiri-Mutsopotsi explained the reasons behind this trend:

"The global oil market has been influenced by increased production by OPEC+ countries alongside a slowdown in demand due to global economic uncertainties. These factors have driven Brent crude prices down, which in turn positively impacts fuel prices here in Zimbabwe."

For small business owners, the dip in diesel costs is more than just a positive statistic — it translates to real savings.
Tawanda Nyathi, owner of P&F Haulage Services, said:

"Fuel is one of our major expenses in logistics. The decrease in diesel prices over the past few months has allowed us to cut operational costs and offer more competitive rates to our clients."

The lower diesel prices also carry wider economic benefits. Reduced transportation costs can help lower prices for goods and services, easing inflation and boosting consumer purchasing power. This has the potential to stimulate economic activity and growth across sectors reliant on logistics and transport.

Economist Chipo Moyo, an energy markets specialist, emphasised the advantages of fuel price stability:

"Predictable fuel costs give businesses certainty in planning and budgeting. This stability reduces operational risks and can increase investor confidence, supporting growth in sectors that depend heavily on transportation."

For everyday Zimbabweans, the relief is felt at the household level.
Kelvin Mombe, an accountant based in Harare, shared:

"With diesel prices coming down slightly, I expect to save on commuting costs. Every dollar saved on fuel means more disposable income for essentials and other expenses."

Despite the positive trend, experts urge caution, noting that fuel prices remain vulnerable to global market fluctuations.
Ms Shumbambiri-Mutsopotsi warned:

"While the current decrease is beneficial, global oil markets are volatile. Geopolitical tensions or changes in production by major players could quickly reverse this trend."

As the year progresses, Zimbabwean consumers and businesses alike will be closely watching global oil developments and their impact on local fuel prices.