GOVERNMENT has ordered all fuel dealers to reduce fuel prices by at least 20 cents by next week following a massive 60% drop in the prices of oil on the international market.
Energy minister Samuel Undenge announced the directive yesterday saying the reduction should be done not later than Wednesday next week.
Addressing journalists in the capital, Undenge said the current fuel prices of around $1,50 per litre were no longer justifiable considering the global market price of oil had reached an all-time low of below $50 per barrel from $120 per barrel last June.
“It is important to note that the price of fuel is influenced by many factors in different countries. In Zimbabwe, the December FOB (free-on-board) based maximum pump prices that I expect to take effect by January 14 2015 are composed of almost 50% fixed costs and 50% variable costs,” Undenge said.
The latest development is likely to bring relief to local motorists who had continued to pay higher fuel prices compared to their counterparts in the region.