The Zimbabwe Energy Regulatory Authority (ZERA) has increased prices of fuel by RTGS $0.30 cents with immediate effect, a situation that may result in increases of prices of basic commodities.
ZERA acting chief executive officer Mr Edington Mazambani confirmed the price hike last light saying fuel dealers had been advised accordingly.
“It true, the prices you have are true, its true fuel has gone up,” Mazambani said.
The retail price of one litre of blend petrol (E20) is now RTGS$5.26 up from RTGS$4.97 and diesel is selling at RTGS$5.07 from RTGS$ 4.89. This is the third fuel increase in the past six months.
Before the last increase, fuel was being sold at RTGS$3.36 and diesel RTGS$3.22.
Mazambani said, “Operators may sell petroleum products at prices below the cap depending on their trading advantages.”
In January fuel was increased by 150 percent and this resulted in public protests that led to the killing of several people by state security agents.
Economists say the fuel hikes will result in steep increases of prices of basic commodities.
The central bank recently said foreign currency for purchasing fuel will now be secured using interbank foreign exchange market rates in an effort to promote its effective use and to curtail “incidents of arbitrage in the economy.”
Oil marketing companies were receiving foreign currency to import fuel from the RBZ at a special rate of 1:1 (US/RTGS).