Some dealers resist fuel price slash

HARARE - Some local fuel dealers had as of yesterday not complied with government’s recommended fuel prices of $1,32 for petrol and $1,20 for diesel per litre, as the global oil price further slumped to $46 per barrel at close of business yesterday.

This was according to a snap survey conducted by the Daily News in Harare and major towns on Wednesday.

While Energy minister Samuel Undenge last week threatened unspecified action if dealers failed to reduce petrol and diesel prices by yesterday, most dealers in the capital had reduced prices, but had not met the set threshold.

A Redan service station — part of oil multinational Trafigura and trading as Puma — along Harare’s Samora Machel Avenue, petrol was selling at $1,45 per litre, a slight dip from the previous price of 1,50 and $1,51 per litre. Diesel was also retailing at $1,35 from $1,40.

At a Zuva fuel station also along Samora Machel Avenue, petrol was selling at $1,41 from $1,50 and diesel was going for $1,29 from $1,40 as well.

Some Total service stations, meanwhile, had not adjusted their prices, with prices remaining at $1,49 for blend and $1,32 for diesel, the same prices the publication recorded on Tuesday.

Some service stations did not have fuel.

“We would appreciate it if government just gave us up to next week to clear our stocks.

“They say they gave us a grace period to comply, but some of the stocks we have were bought at a higher price, so we will end up realising losses,” one dealer told the Daily News.

Some, however, have complied, as the global oil price has slumped by more than 50 percent.

As gathered by this paper on Tuesday, Sakunda service stations had complied.

 

Comments (5)

Fuel prices as we speak should be $1 based on the the further decline of crude oil from $85 to $48/barrel. The $1.32 for petrol prescribed by the minister was based on $85/barrel. BP expects the price of fuel to about $50-$60 per barrel. Ceteris paribus, prices in our Zimbabwean economy must stabiles to $1 for petrol. We tired of being exploited by fuel players and the likes of Green Fuel. That liquid they are brewing in Chisumbaje is damaging our cars and and there is no financial and utility benefit to the motoring public. We need radical collective action against these cartels

Tawa - 15 January 2015

Petrol elsewhere like in Kenya is about 80c . Those Fuel rascals in Zim must wake up and sell their fuel. Otherwise they run risk of selling at very much bellow procured price..Reason is World Fuel Prices are progressing in the negative!

frankly - 16 January 2015

If the global price has gone down by more than 50 percent, then the pump selling price must be drastically reduced, government must fix a low selling price relative to the global rate for citizens to have relief. If petrol is procured at 50 cents per litre, why should it be sold for $1.32 and not $1,10, we have so many cars on the road and at this profit magine, i cannot imagine that its not viable. The price of petrol and diesel affects the running of every other business, government must fix the price and if players are not happy, government can take over the selling of petrol and earn some money as most companies are not paying tax where governments gets its revenue, government can supply fuel in a parastatal manner if people dont respond to directives given, the question is how com others have reduced the price and others havent, at the latest price of $1,32 people are still making a profit though small, it is that cancer of profiteering that has gripped the nation and is causing a lot of dismay amongst citizens, lets be fair in business to avoid a blame game, some of the problems are being caused by bad business practices and are erroniously passed on to government, government must crack the whip on stubborn dealers.

tichaona - 16 January 2015

Could the Daily News please do an analysis of the break down of the cost of 1 litre of petrol so we all know how much profit is being made and what a reasonable price should be. The breakdown should cover 1) cost at beira 2) transport costs to Zimbabwe 3) government taxes - anything above this amount is profit made by the fuel distributors and re-sellers and I would be interested to see how much profit is being made per litre It should be a maximum of 7c for the distributor and 7c for the re-seller - ie 14c max but I have a feeling it is much more esp if the tax on fuel has been reduced by 10c a litre. By the way why would the government reduce the fuel levy at a time the are desperate for cash? It's good news for the general public but doesn't seem to make much sense in terms of Government revenues.

pasm - 16 January 2015

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