President ED Mnangagwa is in Davos to hard sell Zimbabwe as the world’s most attractive investment destination. ED’s government has ordered fuel traders to reduce prices with immediate effect, between 7 and 14 percent, within 24 hours after cutting excise duty on fuel.
Zimbabwe consumers will pay less for fuel at the pump from Wednesday morning.
Energy And Power Development Minister Simon Khaya Moyo told journalists that petrol must now retail at $1,35 per litre, with diesel and paraffin prices set at $1,23 and $1,17 respectively.
“After necessary consultations and in terms of section 225 of the Customs and Excise Act (Chapter 23:02), the Minister of Finance and Economic Development has reduced Excise Duty on Fuel with effect from 23 January 2018. The excise duty on petrol has been reduced from $US$0.45 to US$0.385 per litre, while that on diesel and paraffin has been reduced from $US0,40 to US$33 per litre.” Said the Minister.
“In relation to the allowable maximum pump prices that should be observed by all traders, this means that the fuel prices announced this week by the Zimbabwe Energy Regulatory Authority (ZERA), of US$1,40 per litre of petrol , US$1,30 per litre of diesel and $US1,24 per litre of paraffin will now come down to US$1,35 per litre for petrol , USD$1,23 per litre for diesel and US$1,17 per litre for paraffin with immediate effect.” Ambassador S.K Moyo said.
Khaya Moyo denied that the move also proclaims the return of price controls, saying going forward, prices will follow international trends.
“I wish to point out that the reduction in fuel prices will not mean that these will remain fixed. Going forward, the prices of fuel will either go up or down in tandem with oil price movements as always been the case.” added the minister.
The past five months have seen a steady increase in oil prices in Zimbabwe. This upward trend has been occasioned by global trends a phenomenon beyond individualized planned control.
Fuel consumption in Zimbabwe is set to double this year, after having been controlled last year by an acute cash crunch and increased taxes. This bottled-up demand for fuel may spill out at a time when crude oil is getting dearer by the day.
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