The cut in fuel prices by 8 US cents a litre following Government tax cuts has been welcomed by businesses and motorists who have been feeling the pinch after prices rose swiftly following the big jumps in global crude oil prices.
The rapid rise in crude oil prices following global
recovery from the Covid-19 pandemic and then the switches in supply chains as a
result of the Russia-Ukraine conflict saw the retail prices in Zimbabwe rise to
US$1,67 a litre for petrol and US$1,68 a litre for diesel.
The prices follow a formula that includes all costs,
including the fuel duty, and maximum mark-ups for oil companies and service
stations.
But following the intervention by Government, which
promised to reduce the tax on each litre, a litre of petrol is now US$1,59
while diesel is now US$1,60.
In a statement on Sunday, the Zimbabwe Energy Regulatory
Authority (ZERA) encouraged operators to charge prices lower than the capped
price depending on their trading advantages.
“Prices have been set in accordance with oil price patterns
on the international market, which the authority is continuously monitoring,”
said ZERA.
“The public and operators are advised that the blending
ratio remains at E0 (that is no ethanol). Operators may sell the petroleum
products below the prescribed prices depending on their trading advantages and
should display prices in a prominent place as provided for by the fuel pricing
regulations.
“Stakeholders are advised that the petroleum price released
by ZERA can be verified on the official ZERA website, Facebook or Twitter
handle.”
Motorists welcomed the new price announcement, adding that
they hope the prices can remain stable.
Already Saudi Arabia, under pressure from major importing
nations, has said it will pump more crude which global markets expect to
stabilise crude oil prices, although at the new higher level.
While Zupco had maintained its fare structure, many in the
grey and illegal public transport sector had been pushing up fares, quoting the
price rises. The Zupco fleet is growing but is still not able to cope with the
demand for public transport.
Ms Ruvimbo Makamadze, who is in the transport business,
said the reduction of fuel prices definitely aids her operations.
“I am into transport and logistics and I was having a
headache over the increase of fuel prices. It was affecting my operations but
now I am relieved because the reduction of fuel prices means more business as
some customers were no longer keen to hire my trucks due to cost adjustments. Herald
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