Russia-Ukraine war triggers fuel price hike

THE Zimbabwe Energy Regulatory Authority (Zera) on Friday announced an upward review of the price of petrol and diesel, saying the operation pitting Russia and Ukraine had partly contributed to the hike.

Diesel now costs $195, 99 per litre up from $168, 17 while petrol is at $195, 72.

In hard currency, both diesel and petrol will trade at a base price of US$ 1, 51, according to a statement from the regulatory authority.

“The fuel price increase has been prompted by the international crude oil prices which continually went up following tensions in Eastern Europe.

Government has had to subsidise the final price to cushion the economy,” reads part of the statement.

Commenting on the price increase, Indigenous Petroleum Association of Zimbabwe chairperson, Aaron Chinhara said last week’s upward review of fuel duty by the Government had also contributed to the price surge.

“The hike in fuel did not only emanate from the tension in Europe but also an increase in fuel duty, which was increased by four cents on petrol and a cent on diesel on Friday.”

Zimbabwe National Chamber of Commerce chief executive, Chris Mugaga said the Russia-Ukraine standoff has an impact on both fuel and wheat prices in the country.

“The fuel price hike was too immediate and not dragged, which shows how vulnerable our economy is to growing-political risks worldwide. The longer the standoff between Russia and Ukraine, the more significant will be the impact of such developments on oil prices.”
(The Sunday Mail)