COMMUTERS across cities and towns are reeling from steep increases in transport fares, with some local routes charging as much as US$3 during peak hours following the latest fuel price adjustment announced by the Zimbabwe Energy Regulatory Authority (Zera).
The new fuel prices, which took effect on Wednesday, saw diesel rising to US$2,05 per litre while petrol (blend E5) went up to US$2,17, from US$1,77 and US$1,71, respectively, set earlier in the month.
Before that, prices stood at US$1,52 for diesel and US$1,56 for petrol, marking a sharp upward trend within weeks.
Authorities have attributed the increases to global oil market shocks linked to the Middle East war involving the United States and Israel's war with Iran.
Said Zera in adjusting the price: “Working with oil traders, the government is opening up supply routes not affected by the current conflict in the Middle East.
“However, while government ensures security of fuel supply, Zera notices that the cost pressures are piling up and these require that prices be reviewed for two weeks to avoid fuel shortages and arbitrage.”
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However, the ripple effects are being felt most by commuters, who say transport operators are imposing steep and often inconsistent fare hikes.
A survey by NewsDay established that commuters travelling from residential areas to the central business district are paying between US$1,50 and US$2, while those from outlying residential areas such as Chitungwiza and Norton are being charged up to US$3 during peak periods.
Passengers accused registered and pirate taxi operators of exploiting the situation.
“It’s no longer sustainable,” one commuter said.
“Every time fuel goes up, fares shoot up disproportionately.
“But when fuel prices stabilise or go down, fares never come down.”
Added another: “There is no control at all. Operators just charge whatever they want.”
Commuters also pointed to inconsistencies, noting that earlier this month, fares jumped by nearly 50% to around US$1,50 despite fuel increasing by only about US$0,15 at the time.
The Passengers Association of Zimbabwe (PAZ) said it was “perplexed” by the scale of the increases, particularly given that Zimbabwe’s fuel prices were already among the highest in the region, even compared to other landlocked countries.
PAZ president Tafadzwa Goliath said the association would seek urgent engagement with authorities.
“We are concerned about the continued burden on commuters,” he said.
“The increases are too steep and out of sync with regional trends.
“There is a need for dialogue with the authorities to address these concerns.”
The fare hikes are also placing pressure on employers who subsidise transport for workers, with some reportedly scaling back support as costs become unsustainable.
Commuters fear further increases amid uncertainty over future pricing.
Zimbabwe Congress of Trade Unions secretary-general Florence Taruvinga said workers were bearing the burden of the increases.
“Under the circumstances, the increase in fuel cascades to everything. Looking at current remuneration across sectors, it means workers continue to be on the losing end,” she said.
“For those who negotiated salaries last year, their earnings have effectively been eroded by about 50% as fuel prices have nearly doubled. This affects the entire economy.”
Taruvinga emphasised the need for structured dialogue through the Tripartite Negotiating Forum, saying abrupt policy shifts are exposing citizens to recurrent economic shocks.
“There should be a clear statement outlining the reasons behind such increases so that there is collective understanding. Right now, people just wake up to new shocks,” she said.
“There should be a clear statement and understanding of everyone on measures that are being put in place, because if you look at even the disparities between regions or within the Sadc [Southern African Development Community], we are way, way higher in terms of pricing of the same fuel.”
Economist Eddie Cross said the increases were difficult to justify.
“I do not see any justification for the massive increase in prices of fuel in Zimbabwe compared to price changes in the region. These should be investigated,” Cross said.
However, another economist, Christopher Mugaga, cautioned that regional comparisons could be misleading.
“Zimbabwe uses the US dollar, while other countries use local currencies. When you convert their fuel prices, it may not reflect the true cost dynamics because of exchange rate distortions,” Mugaga said.
He added that pricing fuel in a hard currency like the US dollar left Zimbabwe exposed, while countries using local currencies can cushion consumers.
“There are also multiple taxes applied throughout the fuel value chain,
from importation to retail, which significantly push up the final price,” Mugaga said.