Zimbabwe Energy Regulatory Authority (ZERA) on Thursday changed fuel prices within a week.
Reviews which were done barely a week before the latest changes resulted in the price of diesel being maximised at ZWL$17.28 and ZWL$18.40 for petrol.
The authority on Thursday reviewed the fuel prices to ZWL$18.66 for diesel and ZWL$18.70 for the blend petroleum.
Such changes, which appear at a time when inflation is taking toll in Zimbabwe, have always been done every month since last year but not in a week’s time.
Energy and Power Development Minister, Fortune Chasi yesterday defending ZERA said the shift in pricing is provided for under Statutory Instrument 270 of 2019 (SI270).
The statutory instrument allows ZERA to determine maximum wholesale and retail prices.
“In terms of Section 4(4) of the above stated Statutory Instrument (SI270), fuel prices for the succeeding month shall become effective on or before the 5th day of the implementation month,” Chasi said in a statement.
“ZERA adhered to the said Statutory Instrument up to the end of December 2019, Commencing January 2020, prices were announced on 17 January 2020, and in February, the prices for that month were announced on 28 February 2020.”
Besides compliance with the law, the minister went on to link the shifting of prices developments in the international plane.
“Due to the passage of time, internal oil prices moved significantly while the FOB prices used for local pricing lagged behind,” he said.
The minister said such developments at the international plane resulted in pricing distortions in the local market and consequent unavailability of fuel.
“Consequently, upon movement in the international oil prices, ZERA moved to correct the situation yesterday through a public statement in which it reaffirmed the provisions of the law as contained in the Statutory Instrument (SI270),” Chasi explained.
The changes in fuel prices seem to go unnoticed due to a shortage of oil products on retails outlets.
Fuel, however, exists on the black market costing US$8-10 per 5 litres.
