Zim fuel among most expensive

ZIMBABWE’S fuel prices are the 25th highest in the world according to latest information provided by Globalpetrolprices.com.

Herbert Moyo

This is despite a worldwide fall in oil prices in the global markets and the country’s mandatory blending policy, which compels fuel companies to sell blended fuel with 15% ethanol and 85% unleaded petrol.

The website, which quoted local petrol prices at US$1,42 per litre as at February 2, also shows the country’s fuel as the third most expensive in Africa second only to Malawi and the Democratic Republic of Congo (DRC) where petrol sells at US$1,49 and US$1,51 respectively.

Neighbours Botswana, South Africa, Mozambique and Zambia all have cheaper petrol pegged at US$0, 70, US$0, 97, US$0,73 and US$1,12 in that order.

According to the website, the average price of gasoline around the world is US$1,03 per litre.

“However, there is substantial difference in these prices among countries,” the website further states adding, “as a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices.”

The price of oil has fallen in the past year from a peak of around US$115 a barrel last summer to less than US$47 at the beginning of this month, with most countries responding through significant petrol and diesel price reductions.

The website also says that “all countries have access to the same petroleum prices of international markets but then decide to impose different taxes” – an excuse most fuel companies have advanced to explain their failure to significantly reduce prices.

Zimbabwe’s fuel, with the ethanol component, is hardly any cheaper. Zimbabwe Energy Regulatory Authority (Zera) prices show a marginal decline of US$0,03 in December to US$1,40 and US$1,51 per litre for diesel and petrol respectively, but this is still higher than prices in neighbouring countries.

In line with the falling global prices, government in early January ordered the reduction of petrol price from US$1,52 to US$1,32per litre and diesel to US$1,20 from US$1,44, only to raise customs duty on fuel the following week by US$0,10 per litre from US$0,35 per litre to US$0,45 per litre of unleaded petrol, while diesel went up from US$0,30 to US$0,40 per litre as the cash-strapped government sought to raise funds from the fall in oil prices.

This led fuel retailers to also increase prices by US$0,10 cents.


5 Responses to Zim fuel among most expensive

  1. Munyaradzi February 6, 2015 at 3:05 pm #

    I have petrol deliverable to Harare @ $ 0.70 per liter

    • citizen February 9, 2015 at 4:39 pm #

      Is it legal?

  2. SFI February 11, 2015 at 12:17 pm #

    Genuine tax clearance certificates, vat registration, tax consultancy, fresh company registration(plus tax clearance certificate), cr14, annual returns, vendor number registration, deed of trust registration, state procurement board registration, all your company secretarial work, corporate wear- quality t-shirts. 077 2 560 195

  3. E Makhate February 11, 2015 at 6:25 pm #

    Crooks masquerading as businessmen.

  4. school of thought February 12, 2015 at 5:18 am #

    prob is the politicians r the owners of service stations

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