Stakeholders welcome cut in fuel prices

Online Desk |  6 months ago | local

The cut in fuel prices by $USD 0.08 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 $1,67 us a litre for petrol and $1,68 us 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. 

However, following the intervention by Government, which promised to reduce the tax on each litre, petrol is now $US1,59 while diesel is now pegged at $US1,60. 

In a statement, the Zimbabwe Energy Regulatory Authority encouraged operators to charge prices lower than the capped price depending on their trading advantages.