Fuel price to remain stable

Fuel price to remain stable

Sunday Mail Reporter
Prices of petroleum products will remain subdued with petrol and diesel selling at a minimum of US$1,19 and USc94 respectively as there have been no major changes in the trade of crude oil on international markets over the past month.
Zimbabwe Energy Regulatory Authority CEO Engineer Gloria Magombo told The Sunday Mail: “On the (local) market, the actual prices at the pump have been between US$0,94 and US$1,04 per litre of diesel and between US$1,19 and US$1,26 per litre for blend (petrol).
“There is an expectation that the prices will generally remain stable, both diesel and blend prices are expected to have minor fluctuations.
“The fuel price movement in Zimbabwe is in line with fuel price regulations which ensures that petroleum prices move in tandem with the international crude oil price fluctuations thus ensuring consumers enjoy the full benefits of the price reductions.”
Crude oil prices have been falling in the past year as supply increases on international markets.
According to Zera, the drop of crude oil prices to an average US$25 per barrel (159 litres) in recent weeks was the in the last 11 years.
Eng Magombo said falling oil prices had resulted in the reduiction of Zimbabwe’s fuel import bill, saving the country an average US$40 million monthly since the end of 2015.
“(The fuel price reduction has) reduced fuel import bill, improved balance of payment, reduced input costs for the production of goods and services and because of combined effect of lower prices, there has been more spending power and lower costs of business,” said Eng Magombo.
She said the regulatory authority had commissioned a Petroleum Sector Pricing Study to review and update pricing models, and Zera would continue monitoring distributors of petroleum products to ensure their prices reflected international changes.
Fuel prices in Zimbabwe is still higher than regional averages.
Petrol and diesel in Zambia sell for an average of USc89 and USc77 respectively, while in Mozambique petrol is pegged at US$1,04 and diesel at USc81.
In Malawi diesel is selling at an average of US$1,13 and US$1,16 for petrol, with Botswana petrol going for USc75 and diesel for USc71.

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