The Zimbabwe Energy Regulatory Authority (ZERA) has raised petrol prices and reduced diesel prices in the latest review which is with effect from the 18th of January 2023.
In a statement seen by Pindula News, the regulator said petrol would now be sold at US$1.54 per litre up from the previous US$1.53. The cost of petrol was increased from ZWL$1 080.01 to ZW$1 124.61 in local currency.
Diesel is now priced in US dollars at US$1.62 per litre, down from US$1.63 per litre, while it was priced in Zimbabwean dollars at ZW$1 188.77, up from ZWL$1.147.01 per litre.
Read the statement in part:
The public and operators are advised that the blending ratio remains at E5. 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 releases by ZERA can be verified on the official ZERA website, Facebook or Twitter handle.
The average price of diesel around the world is 1.32 U.S. Dollars per litre while the average price of gasoline around the world is 1.29 U.S. Dollars per litre.
GlobalPetrolPrices.com says the differences in prices across countries are due to the various taxes and subsidies for diesel. All countries have access to the same petroleum prices of international markets but then decide to impose different taxes.
As a result, the retail price of diesel is different. President Emmerson Mnangagwa last year directed that duty on fuels be reduced by US 13 cents among other measures to ensure the supply in the market remains stable and affordable.
Fuel prices went up in February with the government attributing the increase to the war between Russia and Ukraine which they said disrupted global trade as the two countries are the main producers of oil.
Analysts noted, however, that while the conflict had an impact on economies all over the world, Zimbabwe’s fuel prices were greater than those of its regional counterparts because of higher taxes.