Brace for fuel price volatilities: Economists

By The Standard and Newsday | Mar. 22, 2022 | 2 Min read

This is despite that the Zimbabwe Energy Regulatory Authority (Zera) this week announced reduction in fuel prices, a few weeks after they were increased, which also raised the prices of food and other basic commodities.

BY VARAIDZO MUDEWAIRI/KUDAKWASHE TAGWIREYI ECONOMISTS yesterday warned that the country might experience the worst in terms of fuel prices as the global fuel situation remains volatile due to the Russia-Ukraine war.

Fuel was reduced by 8 cents for both petrol and diesel, with petrol price falling from US$1,67 per litre to US$1,59, while diesel dropped from US$1,68 per litre to US$1,60.

This was attributed to the decline in oil prices on the international market.

Leading economist Prosper Chitambara yesterday said the global fuel situation remained volatile following invasion of Ukraine by Russia.

“The global fuel situation is volatile, since the invasion of Ukraine by Russia we have seen disruptions in terms of the production of fuel, and in fact in two weeks we saw the price of fuel reaching one of the highest levels since 2008. This impulsive change of fuel prices is going to continue for the duration of the Ukraine and Russia war,” Chitambara said.

“Zimbabwe imports fuel, which means that we are affected severely and this will affect businesses and our economic growth projections for this year. If fuel prices rise, they will affect productivity.”

Economist Victor Bhoroma said: “Unfortunately, there was not much clarity as to what led to the review because global oil prices are still around US$1,20 and US$1,50 per barrel. Since there was no communication, it can only be speculation because it has to be backed by a Government Gazette, but the move is welcome to motorists.”

Keep Reading

Bhoroma said Zimbabwe remained the country with the highest fuel prices in southern Africa despite that it uses the same pipeline as Botswana and Zambia to import the commodity.