‘Fall in fuel prices good omen for economy’

The country has recently witnessed a downward movement of fuel prices both in United States dollar and Zimbabwe dollar terms, due to the current economic stability brought about by government’s socio-economic reforms.

Fuel prices are a key barometer used by economic agents to determine prices of goods and services as it constitutes significant proportions in the production and marketing of goods and services.

It is against the background of a sustained fuel price stability that has given economic minds the clearest indications that the economy is on a rebound after going through periods of volatility.

Says economist Persistence Gwanyanya: “The downward movement of fuel in absolute terms is in line with the country’s policy makers and will be a major boost for the country’s development thrust as stability in fuel sector is a trigger of economic activity.”

Another analyst, Mr Titus Mukove said the effects of price stability and availability have started to spill over to other sectors of the economy.

“We are noting a positive trend whereby fuel prices are reaching equilibrium position in line with the official exchange rate and this is a huge plus in as far as economic activity,” he said.

Fuel is a critical economic enabler, hence the current fall in prices should spur economic growth.

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