Saturday, 6 February 2021

FUEL PRICES GO UP

The general rise in fuel prices on the international market in January necessitated the increases in the prices of diesel and petrol announced by the Zimbabwe Energy Regulatory Authority (ZERA) yesterday

ZERA announced the new fuel prices with effect from yesterday.

According to a statement from the regulatory body, the new price of Diesel 50 in local currency is $105,56 per litre from $100,91 while that of petrol (E10) rose to $104,82 from $99,35. In US dollars, the new price of diesel 50 is US$1,27 from US$1,21 while petrol is now pegged at US$1,26 from $1,23. “Operators, however, sell at prices below the cap depending on their trading advantages,” reads part of the statement from ZERA

Commenting on the latest price increases ZERA chief executive officer, Mr Eddington Mazambani attributed the increases to changes in the Free On Board prices for petrol and diesel in January. The FOB refers to the costs of shipping the product and as a net importer of fuel any rise in the FOB results in price increases for the product.

“The price increases are due to the increases in the FOB prices for the commodities in January,” he said. “On average the FOB price of diesel rose by seven percent in January as compared to December while that of petrol rose by 11 percent.

“The only component of the fuel price that has changed is the FOB which is determined internationally which Zimbabwe can do nothing about.” The fuel prices are subject to review once every month.

Fuel has become more widely available now after the government pegged prices to floating exchange rates, and allowed trading in foreign currency. Herald

0 comments:

Post a comment