Government, through the Zimbabwe Energy Regulatory Authority (ZERA), continues to monitor the security of supply of petroleum products in the market.
In that regard, the Government has notified stakeholders that there are sufficient stocks of petroleum products in the supply chain from Beira to inland storage facilities with more than three months’ supply cover.
Working with oil traders, the Government is opening up supply routes not affected by the current conflict in the Middle East.
However, while the Government ensures fuel supply security, ZERA notes that cost pressures are mounting; therefore, prices need to be reviewed for two weeks to avoid fuel shortages and arbitrage.
“Since the last price review, the FOB price for diesel has risen by 33.16% and for petrol by 5.96%, ZERA said in a statement.
“The Government is taking deliberate action to ensure that fuel imported into the country is accessible to all fuel stations, especially those in remote areas.
“The Government, through its companies Petrotrade and NOIC, will be active in this regard.
“The price of petrol is expected to decrease at the next review, as this coincides with the start of ethanol production. Increasing the blending mandate to E20 would contain the petrol price by around 18 cents.
“The new diesel price has been set with a view to mitigate the impact of the increase on the mining, agriculture, haulage, and passenger transport sectors.
“The Government has removed all taxes and levies on diesel and will endeavour to keep the diesel price lower than it would otherwise be.
“Without Government intervention, the diesel price would have been US$2.65 per litre.
“To open additional avenues for diesel importation, the Government has, with immediate effect, approved the importation of diesel by road, in addition to pipeline and rail,” said ZERA in a statement.
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