Zim petrol price may decline to $1.48/litre

HARARE - Zimbabwe's petrol price may fall to as low as $1,48 per litre while diesel may average $1,32 in 2015, if crude oil prices remain depressed on the world market, the Zimbabwe Energy Regulatory Authority (Zera) said Friday.

Gloria Magombo, Zera chief executive, said the benefits of the declining international oil prices will trickle into the local market.

This comes as the oil price has declined to a five-and-a-half year low of $59 per barrel from around $110.

“As you are aware oil prices have been depressed for a while now globally. Although this will take about two months to take effect on the local market, prices will definitely go down next year as the procurement price will be depressed,” Magombo said.

“So prices will generally range from $1, 32 to $1, 40 for diesel and $1, 48 to $1, 54 for petrol. The margins being a result of differing procurement prices the various players have and varied business costs as well,” she added.

Meanwhile, fuel prices have gone down by an average $0,02, after price increases were recorded in August and September due to government’s introduction of a duty measure of five cents per litre on all fuel imports.

Zera, which monitors national fuel prices through a price surveillance mechanism, anticipates the wave will take effect around early February 2015.

“Yes, as I said this may take two months to take effect but who knows, it may even happen sooner than we expect as this is the current state of affairs globally,” she said.

Magombo said the delayed effect is due to longer transportation of fuel into the retail market, as on average it takes around two months for fuel ships to dock in Beira from the Oil Rig.

Ideally, providers secure three to six months fixed price contracts as a way of hedging against price increases.

Zimbabwe regulates fuel prices through Statutory Instrument (SI) 80 of 2014 which provide the framework for the pricing of fuel. However prices are never the same in the market due to differing operating costs for the various fuel providers.

Magombo also warned fuel providers violating stipulated blending rules to comply with the Zera stipulated standards.

“While dealers have been prosecuted, the fine ranges from $150 to $500 way less than what these crooks make as they fleece Zimbabweans, so next year we will be revoking licenses so that players understand the gravity of the matter,” she said.

Magombo also added that five players had recorded repeat offenses and were a major target for license withdrawal in the coming year.

Comments (7)

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flixcom solutions - 23 December 2014

Nonsense. What a rip off Zera. Petroleum price have dropped by up to 60% translating to petrol prices of 80c to $1.

Guruuswa - 25 December 2014

Zera must be receiving bribes to fix unrealistic prices. Talk of monopoly and price fixing

svumhu - 25 December 2014

But crude oil prices is as low as it was in 09 when local petrol was $0.90

Tumbika - 25 December 2014

REGULATORS across all sectors have failed to serve as surrogate consumer protectors. What a whitewash Gloria. Please pack and your bags and leave those offices !!!

Ken Girtz - 27 December 2014

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Yeukai - 28 December 2014

Ko iyo perol ezimbabwe inodhurirei ikadaro. Kana America ichitengesa perol at 1.80 a gallon ( gallon rekuno is 3.56 litres) how come zimbabwe sells a litre for 1.46? Its the same dollar? Zimbabwe inodhura everyhing vanhu vanorarama sei?

grace jones - 31 December 2014

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