Two weeks ago, we warned that Zimbabwean fuel prices were likely to go up again. Now they have gone up twice and the cause is no mystery. Oil production has fallen on the global market following a decision by oil-producing countries led by Russia and Saudi Arabia to cut global oil production by over 2 million barrels. The OPEC+ group, as this cabal is known, said that they were doing this to prevent global oil prices from falling down from their current levels.
Back on 6 October fuel prices were as follows:
- Petrol US$ 1.52 or $951.85 ZWL
- Diesel US$1.69 or $1057.55 ZWL
Now as of 20 October the prices are as follows:
- Diesel is going for US$1.73 per litre or $1 088.80 ZWL and
- Petrol is now going for US$1.56 per litre or $981.67 ZWL
- Although ZERA insists on publishing ZWL prices for fuel you will not be able to buy fuel in ZWL. At least not at those prices
- You can view current fuel and LP gas prices here.
- Some service stations sometimes sell their fuel at prices lower than this but that’s something very rare these days.
Zimbabweans suffer as the government doesn’t care
Zimbabweans have been left at the mercy of global financial forces by the government which has been happy to fold hands and leave them to fend for themselves. There has been really no indication whatsoever that the government is going to step in and fix the energy crises that is currently battering Zimbabwe with hours of load-shedding forcing most businesses to resort to generators. Already it seems like mobile network operators are giving up. A lot of neighbourhoods are left with very poor network connectivity as soon as the sun rises which is when most neighbourhoods lose ZESA power. The power utility has also not been bothered with preparing a load-shedding schedule. They have opted instead to just make it up as they go.
All this means is that inflation will probably rise in real or USD terms in October just as it looked like it was now under control.