THE National Oil Company of Zimbabwe (Noczim) on Wednesday proposed a new cost build-up for fuel which would result in a litre of petrol being sold for US$1,16 while diesel will cost US$1,01 per litre.
Jet A1 fuel would cost US82c per litre.
While the latest cost build-up would result in the price of both petrol and diesel declining, industry players said the price of fuel remained high when compared to other countries in the region.
The Indigenous Petroleum Group of Zimbabwe (IPGZ) yesterday proposed a further reduction of Carbon Tax and scrapping of debt redemption to ensure fuel prices in Zimbabwe were in line with regional prices.
IPGZ yesterday said government should reduce carbon tax from $0,024 per litre for petrol $0,001.
â€œCarbon tax on petrol is still too high at $0,024 it should be reduced to the $0,001 andÂ debt redemption should be scrapped. Let Noczim deal with its own problems,â€ IPGZ said.
IPGZ said the proposed levels of excise duty at the current levels were reasonable â€œfor nowâ€.
The new build-up has scrapped the strategic reserve levy. The margin of 7% realised by oil companies is said to be low which requires a company to handle large volumes to make a profit.
â€œOur target (IPGZ) is to have the final pump price for petrol to be $0,97 per litre, and diesel $0,90 per litre then Zimbabwe can work again,â€ said IPGZ.
Commenting on their proposal to scrap debt redemption, IPGZ said they â€œstrongly feel it is a Noczim liability and sovereign debtâ€ and questioned how it came about.
â€œWhy should oil companies and consumers bear the brunt of historical Noczim mismanagement?â€ IPGZ questioned.
IPGZ said the Zimbabwe National Road Authority (Zinara) road levy needed to be â€œscrapped since there are now toll gates, and let Zinara make their money from thereâ€.
â€œSadly we do not see where these funds have been applied and our roads are in a sorry state to say the least, this fund needs to be audited, to establish where the funds are,â€ said IPGZ.
Before 1999, Zimbabwe was using an average of 155 million litres of fuel per month, but the figure are down to below 30 million litres per month.
Despite some concessions by the government in reducing excise duty on diesel and petrol, fuel prices in Zimbabwe still remain high compared to other countries in the region.
Petrol prices had gone up to US$1,50 per litre last month while diesel averaged at US$1,20 way ahead of regional averages. The National Procurement Committee that is responsible for fuel imports, last month recommended a pump price of US$1,30 for petrol and US$1,06 for diesel.