THE Zimbabwe Energy Regulatory Authority (Zera) says the recent regulations will not result in the increase in the price of fuel, but were meant to provide a price cap within which the prices should be set.
The Energy and Power Development ministry last week gazetted the Petroleum (Fuels Pricing) Regulations 2014, which would apply to fuel prices in relation to petroleum products at wholesale and retail levels.
The petroleum products are unleaded petrol, diesel and illuminating paraffin.
According to the gazette, the selling price by a petroleum company on any petroleum products shall not exceed the oil company purchase price plus 7% of the oil company purchase price.
It said the selling price should be a minimum of $0,06 for every litre or a maximum of 7% of the oil company’s selling price, in the case of retail outlet.
This had raised fears of a fuel price increase which would have ripple effects on the economy.
To the ordinary worker, any rise in the price of fuel would have resulted in an increase in fares at a time companies are struggling to pay salaries.
Zera chief executive officer Gloria Magombo told NewsDay yesterday: “Fuel prices are not expected to increase or decrease as a result of the fuel pricing regulations. The regulations simply gave legal effect to what the fuel market has already been experiencing in line with the Petroleum Act [Chapter 13:22].”
Magombo said the regulations set the parameters within which operators should set prices of fuel at different points of the fuel supply chain for the oil company level and the retail level.
“It provides the price cap within which the fuel prices should be set in line with the Petroleum Act (Chapter 13:22) Section 60 subsection 2. It is meant to protect the motoring public from unscrupulous operators who might want to exploit and raise prices without justification,” Magombo said.
She said Zera would monitor prices in the market to ensure that they were within the framework.