HomeBusiness DigestFuel levy decrease leads to marginal price decline

Fuel levy decrease leads to marginal price decline

THE Consumer Council of Zimbabwe (CCZ) says the reduction in the fuel levy by Government has led to a marginal decrease in prices.

By Kudzai Kuwaza

Government reduced excise duty on fuel in January this year as part of measures to combat the increase in the price of basic goods.

High fuel prices have contributed to the increase in price of goods as retailers passed the cost to consumers in the pricing of their products.
Excise duty on petrol fell by 6,5 cents per litre from 45 cents per litre to 38,5 cents per litre, while that on diesel and paraffin declined from 40 cents per litre to 33 cents per litre.

CCZ executive director Rosemary Siyachitema told businessdigest this week that they have noted a marginal decline in the price of basic commodities between January and February.

“The reduction in fuel duty has not affected major price structures as indicated by the CCZ family basket,” Siyachitema said. “There has been 0,4 % decline in prices for the period from January to February and as CCZ we assume that it was because of the reduction of duty on fuel.”

She said that during the recent commemorations of the World Consumer Rights Day, consumers raised a number of issues affecting them. Siyachitema said the issues raised include long queues in banking halls, the need for clear government and regulator commitment in making the digital market place fairer, extra charges to get cash from merchant codes by a rate of between 20 to 25%, poor network connectivity and challenges of transacting money across mobile networks.

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