By Savious Madanhire
The Zimbabwe Energy Regulatory Authority (ZERA) has announced a review of fuel prices, for the month of November, with allocations in both the local currency ZiG, and the United States dollars.
In a statement ZERA announced an increase in fuel prices, citing rising operational and international costs.
The new prices, from 5 November, see diesel 50 priced at ZW$41.01 per liter or USD 1.52 and the E20 petrol blend at ZW$40.62 per liter or USD 1.51.
According to ZERA, “the Free on Board (FOB) cost for diesel stands at USD 0.7176 per liter, while the E20 petrol blend is slightly higher at USD 0.7417 per liter. The prices include a 20% ethanol blend in petrol to enhance supply stability and reduce costs.”
ZERA emphasized that fuel stations may price below the cap depending on operational efficiencies, and clear display of prices is mandatory for transparency.
“Fuel stations may price below the cap depending on operational efficiencies. Clear display of prices is mandatory for transparency hence ZERA encourages the public to verify prices via their official website or social media for the latest updates.”
This fuel price adjustment may impact Zimbabwe’s economy, with consumers likely to feel the pinch.
Despite (the ZERA) dual-pricing system, several fuel stations in Gweru are only accepting US dollars rejecting the local currency hence sparking concerns over the stability of the Zig currency.
This refusal can exacerbate economic challenges, for those earning the local currency as it becomes difficult for them to purchase fuel as their currency is rejected hence they will have to approach money changers using an insane rate which makes it challenging for local currency earners to meet their standards.
However, this refusal may bring about a range of challenges for local currency earners, including commuters, taxi operators, and small businesses, who may struggle to access fuel hence disrupting daily activities.
Those who rely on public transport may face increased fares as operators pass on USD conversion costs.
The refusal to accept local currency may create economic segregation, favoring those with access to USD over local currency earners.
