Fuel price up 17%
BUSINESS REPORTER
Zimbabwe has hiked the price of fuel by 17% in local currency and about 5% in United States dollar on the back of a surge in international crude oil prices following “tensions in Eastern Europe”, the energy regulator said on Friday.
Russia’s invasion of Ukraine on a “special operation” has seen international crude oil price rising above US$100 per barrel for the first time in more than 7 years.
In a statement, the Zimbabwe Energy Regulatory Authority (ZERA) said diesel 50 will be sold at ZWL$195.99 per litre this month from ZWL$168.17 last month. Blend price rose to ZWL$195.72 per litre from ZWL$167.91. In United States dollar, the price of diesel 50 and blend rose to US$1.51 per litre from ZWL$1.44 last month.
The price would have been higher had the government not provided a subsidy, ZERA said.
“The fuel price increase has been prompted by international crude oil prices which continuously went up following tensions in Eastern Europe,” ZERA said.
The hike in fuel prices will trigger a spike in the prices of goods and services thereby pushing up inflation which has been on an upward trajectory over the months.
Annual inflation rose to 66.1% in February from 60.6% in January.
The central bank has projected annual inflation to be between 25% and 35% by year end, a target analysts have dismissed as “wishful thinking”.
