Reduction of fuel prices expected to bring economic relief

By Davison Vandira

ECONOMISTS have commended the government for its responsiveness after a timeous reduction of petrol and diesel prices.

According to a Zimbabwe Energy and Regulatory Authority (ZERA) communique, a litre of diesel is now pegged at US$1,60 down from US$1,68 while petrol is now at US$1,59.

With an average daily consumption rate of four million litres of fuel, the economy is expected to get a saving of around US$320 000 per day after the reduction in prices.

Economists have since welcomed the government’s responsiveness in adjusting fuel prices as it will have a positive impact on the execution of economic activities since fuel is a key determinant in the cost build-up of goods and services.

“It’s really impressive when the government responds in an effective and efficient manner to international prices, especially for fuel, it should be welcomed as it has a bearing on how the economy will perform going forward,” said an Economist Dr Prosper Chitambara.

“This government’s action speaks about its sincerity to the plight of citizens when it comes to prices of goods and services as what they have done will go a long way in taming inflation which has been rising over the recent past,” added another Economist, Mr Titus Mukove.

A survey conducted by ZBC News in Harare also revealed that most service stations had complied with the directive selling diesel and petrol at the recommended prices.

Only a few have remained defiant as they were displaying last week’s prices while some were not displaying prices in violation of fuel regulations.