THE price of fuel at forecourts which went up by 150 percent on Wednesday will be reviewed weekly in tandem with the exchange rate, Zimbabwe Energy Regulatory Authority (ZERA) has said.
The price of petrol has gone up to ZWL$71.62 per litre from ZWL$28.96 a litre while the price of diesel was increased to ZWL$62.77 from ZWL$24.93.
“We have had an exchange rate used for fuel different from the one prevailing in the market, but if the auction exchange rate is the one, which is going to be used to procure fuel, yes we are going to change fuel prices on a weekly basis,” ZERA acting chief executive officer, Eddington Mazambani told Parliament on Thursday.
The Reserve Bank of Zimbabwe (RBZ) replaced the interbank market with weekly foreign exchange auctions to determine the Zimbabwe dollar exchange rate.
“We have already done an amendment to the Statutory Instrument which established the pricing of fuel on a monthly basis to move back to weekly, which we used to do before,” added Mazambami.
On the issue of mandatory blending, Mazambani said the benefits of blending extend to environmental protection.
“On the issue of the ethanol price, we did an exercise in 2013 or 2014, and we did a report on the costing. At that time they (ethanol producers) were not producing a lot so the overhead cost structure was a bit on the high side so currently we are engaging with the producers.”
He added: “We do not only get our ethanol from Green Fuel. There is a joint venture company between the National Oil and Infrastructure Company of Zimbabwe and Triangle called the Ethanol Fuel Company of Zimbabwe. We are engaging them for them to submit their cost structure. We want to interrogate their cost structure so that we can establish the true cost of producing ethanol.”