The Sunday News
Judith Phiri, Business Reporter
THE Zimbabwe Energy Regulatory Authority (ZERA) has slightly reduced the price of diesel while maintaining that of petrol, despite an increase in price of the International Benchmark of oil due to uncertainties associated with the Covid-19 pandemic which has resulted in high demand of oil.
In a statement yesterday, Zera said the price cap for diesel has gone down from US$1.32 to US$1.30 per litre, while the petrol cap will remain at US$1.33. Zera said on the world market there was a 3.50 percent increase in price of international benchmark-brent crude oil, together with a 1.05 percent increase on petrol price and a 2.66 percent increase in the price of diesel. Instead the company announced that basing on the above capping prices for diesel and petrol were set to increase to over US$1.35 per litre this month.
“Zera managed to accomplish this feat (of reducing prices) through an innovative and rigorous review of the price build up with the aim of achieving the least cost pump price for consumers,” read the statement.
Zera, however, said demand for fuel was going up.
“The demand for oil is increasing, following economic recoveries after most countries, including Zimbabwe, have rolled out Covid-19 vaccination programmes and implemented stimulus measures. However, there are still uncertainties associated with the Covid-19 pandemic that the Organisation of the Petroleum Exporting Countriesand other producing countries, led by Saudi Arabia and Russia, are only gradually producing more barrels of oil into a strengthening oil market, leaving the market in a persistent deficit.”
Zera said it will continue with its mandate and efforts to protect consumers and minimize the increases and increased worldwide demand for fuel, as Covid-19 restrictions ease and economies recover. Zera encouraged operators to charge prices lower than the capped prices depending on their trading advantage.
