News / National
Fuel price hike expected this month
07 Mar 2025 at 10:38hrs | Views
In March 2025, Zimbabwean consumers will see a slight increase in petrol prices, with the price per litre rising to US$1.54 from US$1.53 in February. On the other hand, diesel prices have experienced a slight decrease, dropping to US$1.55 per litre from US$1.58 last month.
These adjustments in local fuel prices are largely driven by the fluctuations in global oil markets, particularly changes in the price of Brent crude oil, geopolitical tensions, and blending costs.
In February 2025, the average price of Brent crude oil stood at approximately US$79.27 per barrel, marking a minor decrease from January's average of US$80.12 per barrel. Global oil prices are influenced by several factors, including geopolitical events, supply decisions by major oil-producing nations, and shifts in global demand.
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) has played a significant role in managing the global oil market. In late 2024, OPEC+ delayed planned production increases due to weaker-than-expected demand and growing competition from non-member countries. The production boost, initially scheduled for January 1, 2025, was rescheduled for April 1, 2025, with an extended production period running until October 2026.
This strategic move was intended to stabilise oil prices amidst market challenges.
Geopolitical factors have also played a crucial role in price volatility. In February 2025, the announcement of new U.S. tariffs raised concerns about the potential impact on global economic growth and energy demand. Despite these worries, oil prices saw a slight rise, with Brent crude futures increasing by 0.7 percent to US$75.17 per barrel. Geopolitical uncertainty tends to influence market sentiment, which in turn affects both global oil prices and local fuel costs.
The relationship between global oil prices and local fuel costs is evident, with fluctuations in Brent crude prices directly impacting the cost of refined petroleum products. The recent increase in petrol prices, coupled with a decrease in diesel prices, reflects these global market trends.
Economic analyst Namatai Maeresera highlights the potential consequences of rising oil prices for the local economy. "An increase in global oil prices can lead to imported inflation," Maeresera explains. "As fuel prices rise, transportation and production costs increase, often passed on to consumers. In the short term, this can reduce consumers' purchasing power and dampen economic activity."
Looking ahead, forecasts suggest that Brent crude oil prices will average around US$74 per barrel in 2025, with a further decline to US$66 per barrel in 2026. These projections are based on expectations of increased global oil production and the possible stabilisation of geopolitical tensions.
However, unforeseen events could disrupt these predictions, leading to further volatility in both global oil prices and local fuel costs.
The dynamic between global oil prices and local fuel costs underscores the importance of monitoring international market trends. Consumers and businesses alike should remain attentive to fluctuations in the oil market, as changes can significantly impact everything from transportation expenses to the prices of goods and services across the economy.
These adjustments in local fuel prices are largely driven by the fluctuations in global oil markets, particularly changes in the price of Brent crude oil, geopolitical tensions, and blending costs.
In February 2025, the average price of Brent crude oil stood at approximately US$79.27 per barrel, marking a minor decrease from January's average of US$80.12 per barrel. Global oil prices are influenced by several factors, including geopolitical events, supply decisions by major oil-producing nations, and shifts in global demand.
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) has played a significant role in managing the global oil market. In late 2024, OPEC+ delayed planned production increases due to weaker-than-expected demand and growing competition from non-member countries. The production boost, initially scheduled for January 1, 2025, was rescheduled for April 1, 2025, with an extended production period running until October 2026.
This strategic move was intended to stabilise oil prices amidst market challenges.
The relationship between global oil prices and local fuel costs is evident, with fluctuations in Brent crude prices directly impacting the cost of refined petroleum products. The recent increase in petrol prices, coupled with a decrease in diesel prices, reflects these global market trends.
Economic analyst Namatai Maeresera highlights the potential consequences of rising oil prices for the local economy. "An increase in global oil prices can lead to imported inflation," Maeresera explains. "As fuel prices rise, transportation and production costs increase, often passed on to consumers. In the short term, this can reduce consumers' purchasing power and dampen economic activity."
Looking ahead, forecasts suggest that Brent crude oil prices will average around US$74 per barrel in 2025, with a further decline to US$66 per barrel in 2026. These projections are based on expectations of increased global oil production and the possible stabilisation of geopolitical tensions.
However, unforeseen events could disrupt these predictions, leading to further volatility in both global oil prices and local fuel costs.
The dynamic between global oil prices and local fuel costs underscores the importance of monitoring international market trends. Consumers and businesses alike should remain attentive to fluctuations in the oil market, as changes can significantly impact everything from transportation expenses to the prices of goods and services across the economy.
Source - the herald
