THE Zimbabwe Energy Regulatory Authority (Zera) says the
latest fuel price increase has been caused by the recent adjustment in the
forex exchange rate, which is now fixed at US$1:ZWL$25 on official platforms.
The Reserve Bank of Zimbabwe (RBZ) has also granted the
greenlight for consumers and businesses to trade in foreign currency and
suspended, until further notice, any increase in charges related to the
provision of electronic payments.
The interventions are part of monetary measures in response
to the financial vulnerabilities caused by Covid-19. In this regard Government
has shelved the ‘managed floating exchange’ model and adopted a fixed exchange
rate system pegged at interbank level of ZW$25 to the US dollar. This has seen
Zera increasing the pump price of diesel and petrol.
“Please be advised that the fuel prices effective 05 April
2020 are as follows: maximum pump price for diesel ZWL$21,52, blend E5
ZWL$21,77 per litre.
“Operators may, however, sell at prices below the cap
depending on their trading advantages,” said the energy regulator.
Speaking by telephone yesterday, Zera acting chief
executive officer Mr Eddington Mazambani said:
“The causes of the increase is the exchange rate. Remember
our previous price was pegged at ZWL$18,42 and now we have got an exchange rate
of ZWL$25 to the dollar (United States) and then duty on petrol.
“And duty, when we had the previous price regime (before
the latest price adjustment), it was ZWL$4,26 for diesel, ZWL$4,44 for petrol,
it’s now ZWL$5,82 diesel and ZWL$7,28 for petrol.”
Mr Mazambani said when looking at the prices in US dollars,
the country is far below the regional comparison.
“Our prices are way below a dollar. In actual fact, if you
look at the previous prices in dollars, it’s more than the prices we have now
in US dollar terms.
“So, as much as the prices might have increased in RTGS
form, in actual fact in US dollar terms, the prices have actually come down,
which is in line with the international trade.
“It’s just that the exchange rate moved and also the duties
moved,” he said.
Meanwhile, crude oil prices have plunged to US$20 per
barrel, which is the lowest since 2002, on the back of low demand due to a
global lockdown on coronavirus fears.
The Organisation of the Petroleum Exporting Countries
(Opec), and Russia were expected to meet this week to discuss oil output cuts
until Thursday. Chronicle
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