THE Zimbabwe Energy Regulatory Authority (Zera) has warned fuel service stations charging above regulated pump prices that they risk prosecution, as the regulator intensifies nationwide compliance inspections following the latest reduction in fuel prices.
The warning comes amid growing public frustration over fuel costs in Zimbabwe, which remain higher than in many neighbouring countries despite recent reductions to around US$1,98 per litre for petrol and US$1,99 for diesel.
Zera chief executive Edington Mazambani told NewsDay the authority noted reports that some fuel retailers were selling above the maximum prices announced by the regulator, prompting an enforcement blitz.
“We have regional compliance officers who enforce issues to do with pricing and quality of fuel products. They always do rounds to check on fuel prices,” Mazambani said.
“But lately, we have had confusion after hearing that some service stations are selling fuel above announced prices. So, we are going to enforce compliance to fuel prices and at the same time prosecute those charging above regulated prices.”
The warning comes after Zera announced a reduction in maximum pump prices for petrol and diesel, following developments on the international oil market.
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Mazambani said the regulator was reviewing fuel prices every two weeks instead of the usual monthly cycle due to volatility on global oil markets, triggered by tensions in the Middle East.
“But when fuel stabilises, as a country we always review our fuel prices once every month by the fifth so that we are as closer to the fuel market prices as possible,” he said.
Mazambani added that the latest reduction in fuel prices should be reflected across the economy, particularly in public transport fares and the prices of goods and services that had increased when fuel prices rose.
“One would expect that the prices of commuter omnibus transport and other goods and services which were increased because of the increasing fuel prices will also have to be reduced,” he said.
“But obviously we know that prices are sticky on coming down. We expect that through working together with other government agencies we will be able to enforce reduction of prices of goods and services in line with the reduction of fuel prices.”
The remarks are likely to pressure transport operators, retailers and service providers, who often cite fuel costs as justification for price increases but are slow to reduce charges when fuel prices decline.
Under Zimbabwe’s fuel pricing framework, Zera publishes maximum pump prices for licensed fuel retailers. The authority is also responsible for monitoring compliance with fuel pricing regulations and ensuring fuel quality standards are maintained across the country.
The latest warning signals a tougher enforcement approach by the energy regulator, with fuel retailers who disregard regulated prices facing prosecution as government seeks to ensure consumers benefit from low fuel costs.