Zim fuel prices among highest in the region

Login

Register

http://www.clubofmozambique.com/

Zim fuel prices among highest in the region

8:48 CAT | 21 May 2018

The cost of fuel in Zimbabwe has remained marginally high in comparison to other regional countries, a development attributed to various taxes and the recent increase in international crude oil prices.

The spiral in prices of fuel comes amid continuous gains in crude oil prices globally. The Brent crude oil is currently priced around $79 per barrel from $65 per barrel late last year.

The United States has announced it will impose sanctions on Iran over its nuclear programme, raising fears that markets will face shortages later this year when trade restrictions take effect.

Earlier this year, the Government of Zimbabwe reduced excise duty on petrol to 38,5 cents from 45 cents, while that of diesel and paraffin was reduced from 40 cents per litre to 33 cents.

This led to petrol prices going down from an average of US$1,40 and US$1,56 to US$1,33 and diesel prices reducing from US$1,30 to US$1,23.

However, the recent international increase in fuel prices has led to an upsurge of fuel prices.

Petrol prices now range from an average of US$1, 39 per litre to US$1,40 , depending on service station and diesel is going for US$1, 26 per litre.

According to Zimbabwe Energy Regulatory Authority (Zera) chief executive officer, Gloria Magombo, local fuel charges are more responsive to international fuel markets.

“Government has made efforts to ensure fuel prices are low. However, our prices are more responsive to change. This is why we see that any increase in the international market also leads to an increase locally,” she said.

Engineer Magombo said excise duty vary from country to country, translating to different price responses when a decrease or increase occurs on the international market.

In addition to price hikes, a number of service stations in the country this week ran out of fuel, resulting in long queues at service stations that had the fuel.

Fuel marketers also have to pay the Zimbabwe National Road Administration road levy, carbon tax and strategic reserve levy among other costs in the process of importing fuel to the country.

In Namibia, petrol costs US$0,96c and diesel is US$0,99c per litre, in Angola petrol costs US$0,70c per litre and diesel costs US$0,59c per litre while in Botswana petrol and diesel costs US$0,85c and US$0,80c per litre respectively.

Petrol in Lesotho costs US$0,91 and diesel costs US$0,93 per litre, in Mozambique petrol costs US$1,07 and diesel costs US$1,01 per litre and petrol in Malawi costs an average of US$1,15 and diesel costs an average price of US$1,13 per litre.

In South Africa, petrol costs and diesel costs are (US$1, 13, US$1, 08 per litre) and Zambia petrol and diesel costs are (US$1, 38 , US$1,20 per litre) respectively.

The South African government has indicated possibilities of an increase in fuel prices by US$0, 70 cents.

Source: The Southern Times