The Zimbabwe Energy Regulatory Authority has reduced the fuel prices. The move is not what the public expected as the country is facing acute fuel shortages that are crippling the industry and inconveniencing motorists.
The maximum pump price for diesel has been pegged at 17.28 whilst the maximum price for petrol is 18.40. The move is likely to worsen the fuel situation as dealers will not have enough incentive to operate as their margins have been cut. On the other hand, black market activity is most likely to worsen.
Fuel prices have been increasing since January 2018 when a major increase was announced by President Emmerson Mnanagagwa. The annoncement sparked a wave of protests that were met with a heavy hande by the government as soldiers were deployed to quell the uprising.
Recently the Governor of The Reserve Bank of Zimbabwe instructed ZERA to register more fuel stations that intend to import their own fuel and charge in USD. The move was a response to the worsening fuel situation experienced in February 2020. One of the leading fuel dealers, Zuva Petroleum recently got eight of their fuel stations approved to sell in foreign currency.
Zimbabwe’s fuel industry is infested with cartels that are blamed for the shortages. Recently the leadership of the ruling party ZANU PF Youth League went on a drive to expose these cartels. They were silenced soon after their first press conference.