After increasing the price of fuel about nine times this year, ZERA has pulled a shocker and done the opposite. They have actually sent out a circular reducing the price of fuel! It’s not by much but still, the act itself is just a refreshing turn of events.
The new diesel price is ZWL $10.25 down from $10.32. That is a seven cents reduction. The new petrol price is $9.86 down from $10.01. A 15 cents decrease. Sure 7 and 15 cents won’t buy you anything, not even a sweet, but this can turn into significant savings for people like farmers who buy in bulk.
| Diesel ZWL | Blend Petrol ZWL | |
|---|---|---|
| FOB | 0.5781 | 0.5320 |
| Exchange Rate | 8.5000 | 8.5000 |
| Duty (ZIMR Exchange Rate-10.7139) | 2.8158 | 2.9453 |
| Oil Company Margin | 0.5420 | 0.5218 |
| Dealer Margin | 0.6703 | 0.6453 |
| Maximum Pump Price | 10.25 | 9.86 |
An interesting twist on our way to economic doom
Its something every motorist has now come to anticipate: Every weekend the Zimbabwe Energy Regulatory Authority hikes the prices of fuel. So as we line up to get our tanks we filled each weekend we are simply resigned to the fact that we may end up paying more than the guy who was served before us.
A price reduction is a welcome twist that unfortunately will not last. Last week we saw the Zimbabwean dollar lose value against the US dollar. Petroleum products are priced and sold in US dollars on the international market.
According to ZERA the reduction is due to a decrease in the landing price. However, this decrease is going to be offset by exchange rate fluctuations we are experiencing. The government has made it clear that they want to make sure fuel is selling for $1 USD in Zimbabwe. Well $1 is close $11 officially now as the ZIMRA exchange rate which is more realistic shows above.
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