Zimbabweans will see an increase in the price of fuel at the pumps, effective 5 November 2024. The Zimbabwe Energy Regulatory Authority (ZERA) announced revised prices for both diesel and the E20 blend, impacting both local currency (Zimbabwean dollar – ZWL) and US dollar transactions.
The adjustments, based on the M-1 pricing mechanism, will remain in effect until 4 December 2024.
In a statement released by ZERA, the new prices were detailed. For diesel 50, the local currency price has risen from ZWL 38.03 per litre to ZWL 41.01 per litre.
Similarly, the price of the E20 blend has increased from ZWL 37.70 per litre to ZWL 40.62 per litre. These increases reflect the ongoing fluctuations in global fuel markets and their impact on the Zimbabwean economy.
The US dollar prices have also seen a modest increase. Diesel 50 will now cost US$1.52 per litre, up from US$1.50 per litre. The E20 blend will cost US$1.51 per litre, a slight increase from the previous price of US$1.49 per litre.
The dual pricing system, using both the local currency and the US dollar, reflects the ongoing economic realities in Zimbabwe, where both currencies are in use.
ZERA’s statement also included important information regarding fuel blending and price transparency.
“The public and operators are advised that the blending ratio is at E20,” the statement read.
This clarification aims to ensure that consumers are aware of the fuel blend currently in use and that operators are adhering to the stipulated blending regulations.
The statement further emphasised the flexibility afforded to fuel operators regarding pricing.
“Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided for by the fuel pricing regulations,” ZERA clarified.
This provision allows for competition amongst fuel retailers, potentially offering consumers some degree of price variation based on market dynamics and individual business strategies.
The regulation of fuel blending is also highlighted.
“Blending of fuel is exclusively conducted by licensed blenders only who abide by and comply with Zera regulations,” the statement emphasised.
The price adjustments announced by ZERA will undoubtedly have a ripple effect across various sectors of the Zimbabwean economy. Transportation costs, for instance, are likely to increase, potentially impacting the prices of goods and services.
The impact on consumers will vary depending on their individual circumstances and consumption patterns. The increase in fuel prices will inevitably put pressure on household budgets and may necessitate adjustments in spending habits.
