THE move to peg fuel price according to delivery distance
from Harare has sparked outcry among consumers and business leaders who feel
the move will disadvantage communities that are far from Harare.
On Monday, the Zimbabwe Energy Regulatory Authority (Zera)
announced an increase in the price of fuel, with cities having different prices
ranging from $10,01 to $10,56 for petrol and $10,32 to $10,86 for diesel.
According to the price list released by the authority,
motorists in Matabeleland are now buying fuel at higher prices compared to what
their counterparts in other provinces are paying. The increase comes a week
after the authority reviewed fuel prices to $9,36 for diesel up from $9,27
while petrol went up to $9,12 from $9,09.
Confederation of Zimbabwe Industries (CZI) president for
Matabeleland Chamber, Mr Shepherd Chawira, said they would soon engage
authorities to express their displeasure over the pricing of fuel. He said fuel
price disparities would affect prices of products produced in the region which
logically would be more expensive compared to those produced say in Harare.
“It’s an issue that we are seized with as industry in
Bulawayo because what we are saying is that the fuel price disparities will
render all goods and services produced in Bulawayo uncompetitive and this also
undermines efforts being made to revive the city’s industries,” he said.
In Victoria Falls for instance, petrol is now Z$10,80 per
litre while diesel is Z$10,88. Motorists in the resort town said they were concerned
as this will force many of them to park their vehicles amid fears public
transport operators will also hike fares.
“Fuel is now very expensive. Transporters have started
adjusting their fares with a one way trip now going for Z$6. We know we are far
away from the fuel source but we cannot be punished for that. We are earning
the same salaries that workers in other cities and towns are being paid hence
we should pay the same prices for fuel,” said a taxi driver, Mr Ignatius
Muleya.
He said they were already feeling the negative impact of
the price disparities as commuters were now walking to town after they adjusted
fares inline with the new fuel prices.
Commenting on the same, Zimbabwe Congress of Trade Union
secretary general, Mr Japhet Moyo, said employers including Government should
constantly increase salaries to cushion workers against such shocks as fuel
price increases.
Many Zimbabweans took to social media platforms to express
reservations over the decision to have different fuel prices for cities and
towns and implored Government to reverse it.
Contacted for comment Energy and Power Development
Minister, Advocate Fortune Chasi defended the decision saying the model was in
line with international trends.
“If there was a pipeline from Botswana to Bulawayo
naturally fuel was going to be cheaper in Bulawayo compared to areas far way
such as say Muzarabani in Mashonaland Central province,” he said.
Minister Chasi said such pricing was being implemented in
other countries.
“In South Africa forexample, areas that are close to the
coast where the fuel is warehoused, pay less compared to what motorists say in
Musina and other areas pay.The same thing happens in Malawi but in Tanzania
it’s different because the Government subsidises fuel so that the price is
uniform throughout the country,” said Minister Chasi.
He, however, said it was important for the nation to come
up with measures that will make fuel accessible across the country at a
reasonable prices.
Minister Chasi said his ministry was therefore analysing
several proposals to ensure fuel is provided at affordable prices across the
country.
Association for Business in Zimbabwe chief executive
officer, Mr Victor Nyoni, backed the minister’s stance saying fuel price
disparities were justified taking into account business fundamentals. “We
understand that there are transportation costs that will obviously cause
variation in terms of the price of fuel and we all know that fuel has to be
moved from Harare to various places,” he said. Chronicle
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