Story by Owen Mandovha
GOVERNMENT has reduced fuel prices following an easing of tensions in the Middle East, a development that has contributed to a decline in global oil prices, bringing relief to motorists, businesses and the broader economy.
The conflict in the Middle East involving the US, Israel and Islamic republic of Iran led to the closure of the Strait of Hormuz, where at least 20 percent of global oil prices transit through.
Oil prices rose to more than US$100 per barrel, and locally, ZERA adjusted fuel prices to more than US$2 per litre for both petrol and diesel.
The United States and Iran have entered into a peace agreement, and global prices have responded accordingly.
ZERA has accordingly revised the prices of petrol and diesel. A survey carried out in Harare showed that fuel service stations sold diesel at US$1.99 per litre, while petrol is trading at US$1.98 per litre.
“Government has slashed prices following the developments on the global markets. We expect this downward review to be a relief to motorists, but most importantly to industry which will see a reduction in costs. We are alive to the developments taking place on the global market,” the Minister of Energy and Power Development, Honourable July Moyo noted.
The Chief Executive Officer of the Zimbabwe Energy Regulatory Authority, Mr Eddington Mazambani, says the regulator will ensure compliance with the newly gazetted fuel prices while continuing to monitor international market trends.
“We are advised that most service stations have reviewed prices downwards, but there are some rogue ones who may still want to profiteer. Will continuously monitor developments and ensure that we revert to the old prices, but that is dependent on global developments,” he said.
Government says it will continue implementing measures aimed at cushioning the economy from external shocks, including increasing ethanol blending, a strategy that has already saved the country hundreds of millions of dollars in fuel import costs.
