Govt in fuel price head ache …as ZERA announces fuel price increase

In a dramatic U-Turn the Zimbabwe Energy Regulatory Authority (ZERA) has reneged from its earlier announcement on Tuesday morning submitting that there were no amendments in fuel prices exposing a massive policy inconsistency.

 The latest announcement from ZERA states that fuel price has been increased to RTGS$ 4.97 for petrol and RTGS $4.89  for diesel with immediate effect.

The prices are applicable from May 21 to May 26 pending review and operators will sell at prices below the cap depending on their trading advantages.

A memo gleaned by this publication and authored by the acting chief executive officer Eddington Mazambani said the development was is in line with the announcement by Reserve Bank Of Zimbabwe to purchase fuel at an interbank rate.

“The Zimbabwe Energy Regulatory Authority (ZERA) advises that in terms of amendments to Statutory Instruments 9 and 10 and the new measures taken by the Reserve Bank of Zimbabwe on fuel procurement based on the interbank rate,” he wrote.  

In a snap survey made by this reporter, on Tuesday morning most fuel operators were holding on to their fuel in speculation that the price increase will be officially effected.

However some , fuel stations around the Avondale area were selling in United States dollars.  

Commuters who spoke to this publication were worried that the kombi fares were likely to increase by end of day Tuesday.

“I stay in Chitungwiza and I am worried that after work we might be charged RTGS$ 5 because usually our route every passenger is charged a litre of fuel,” said one commuter who identified himself as Pascari Purenyuwa.

The government is in a catch 22 situation over the fuel pricing regime .