Gweru fuel dealers remain defiant

GWERU - Fuel dealers here have maintained old fuel prices, defying government’s order to slash prices to the recommended $1,32 for petrol and $1,20 for diesel following a slump in world oil prices, the Daily News has learnt.

At Total, the pump price of petrol and diesel remained at $1,46 and $1,37 respectively.

Engen maintained old petrol prices at $1,52 for petrol and diesel at $1,42 while BP Shell is still using the old fuel price regime.

Redan is the only service station that complied with government directive but only slightly reduced prices by five cents from $1,38 to $1,33 for diesel.

A fuel trader who spoke to the Daily News on condition of anonymity said the company would not reduce prices any further.

“We reduced prices by five cents and we will not be liable to answer if government raids us.

“This is so because we are running a franchise and the fuel prices are determined by the owner of this place,” the fuel dealer said.

The global oil prices slumped by over 50 percent, with a barrel costing $46, a situation that has forced a reduction in retail prices.

The ministry of Energy has thus given fuel dealers two weeks to comply, but most service stations here professed ignorance of the government directive.

Energy minister, Samuel Undenge also made it clear that the new fuel prices were only ceiling prices, but fuel traders could charge lower prices.

Comments (2)

Not surprising to find Redan being the first to make a positive move, they've always been quite proffesional, people need to understand that fuel prices cannot just be dropped in a matter of days as the old stock is not just that which is in the tank, these companies will have bought a lot of fuel from NOIC well in advance, but all the same, it feels good to see prices go down

K.B - 16 January 2015

On Friday the 16th i observed that Total and Redan in Harare had not slashed their prices and are still on the old price regime. Government needs to toughen up. But then again, how can someone who is benefiting from the system be expect to change the system itself

Arthur - 19 January 2015

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