Fuel prices 'must' go down

EDITOR — With the global oil prices tumbling to around $30 a barrel it is of major concern that fuel prices remain high in Zimbabwe with motorists being forced to fork out up to $1,40 per litre for petrol despite being blended with locally-processed ethanol.

As the international prices continue to tumble, most countries have adjusted their prices to match the trends on the international market.

In neighbouring countries, Namibian motorist are paying US$0,59c per litre, in Tanzania US$0,75c, in Zambia US$0,79c, in Mozambique US$0,89c and in South Africa US$0,67c.

Globally, Zimbabwe is one of the few countries remaining with high fuel prices.

Motorists in Zimbabwe should be paying less than US$0,80c per litre of petrol but a group of greedy politicians led by a presidential hopeful has taken over the control of the fuel pipelines, bulk wholesale and retail business.

Pure greed from the group has seen the fuel prices remaining high causing a negative impact on the economy.

Local production in most companies remains low because of the high fuel prices, forcing the country to purchase commodities from South Africa, making Zimbabwe a huge supermarket of South African products.

The regulatory authority, the Zimbabwe Energy Regulatory Authority should do its work and ensure that the current pricing model is in line with what is prevailing on the international market as the price of fuel is a key cost driver in production.

The adjustment of fuel prices should be done in accordance with the international prices.

Similarly, the Competition and Tariffs Commission has failed on its mandate by allowing the same actor to control the pipeline, wholesale and retail outlets in the fuel industry thereby creating a monopoly and hence fixing prices very high when they must be lower.

I believe the country is in urgent need of an effective regulatory framework that will strengthen the work of the Competition and Tariffs Commission so that it is able to protect consumers from artificial monopolistic price hikes.



Comments (10)

#fuelpricesmustfall. Why is Min Udenge quiet and yet he says Zesa must up tariff whether we like it or not.

Telescope - 28 January 2016

Udenge is one of the Fuel Cartel leaders. He benefits. Greedy unrepentant devils

Valembe - 28 January 2016

Thats what happens when you are led by a myopic govt.

Zvorwadza - 30 January 2016

How on earth are you going to attract tourists,with those exhobitant prices.

Inini1545 - 31 January 2016

If one looks at the structure of fuel prices in Zimbabwe u will see that tax is the biggest component. Fuel duties are Treasury's cash cow and that is why govt is refusing to reduce fuel prices in Zimbabwe. Reducing duties on fuel will mean that monthly revenue collection will fall substantially and govt will fail to pay employee monthly wages and pensions. The prejudice to fuel users in Zimbabwe is huge. To make matters worse most tax revenue including fuel duties is used to finance recurrent expenditures (consumption) rather than capital expenditures.

Cash Cow - 1 February 2016

Actually this has nothing to do with tax, they are realising huge margins even after factoring the tax component.Last year same period fuel was $140 a barrel but it has gone down to less than $30 a barrel, that means it went down by over $90, there has not been any tax review on the fuel, the last time tax was increased was by that small percentage when fuel went from 140 a barrel to $120, meaning that someone is pocketing abnormal profits on fuel importation.

Taku - 3 February 2016

As long as the country continues importing refined petroleum,pices will stay up.It's crude oil that's fallen in price and I very much doubt the refiners are in much of a hurry to slash their prices.

Rawboy - 15 February 2016

Rawboy you seem to miss the point a bit. How do you justify our local price of $1.30 when the same commodity in Namibia is costing 59 cents? There is a very bad culture in Zimbabwe, a tendency to overcharge. Remember at one time in this country we used to buy Econet sim cards for US$100

Soko - 9 March 2016

In neighbouring countries, Namibian motorist are paying US$0,59c per litre, in Tanzania US$0,75c, in Zambia US$0,79c, in Mozambique US$0,89c and in South Africa US$0,67c. Imagine such prices for petrol in Zimbabwe! Whats really is wrong with us when it comes to pricing? Are the prevailing prices not just outright greed? Competition and Tariffs CommissionZimbabwe and Energy Regulatory Authority are definitely not doing there jobs!!

Nyamukondiwa I - 17 March 2016

This is fuel, how about other sectors that we may not be privy? Why this resistance in mining for example. Surely fuel is quite highly priced. Do we need people to complain for a fair share of life? It only happens in Zim, sad sad! Wy should we suffer? Cry the beloved country!! What is sad is that we have a minister, supportive lot of ministers eg industry, finance. Too much pretence on some of these Gvt Officers. Grain we have to import and yet fuel is a major input to our agriculture. The list of complaints is long and needs attention as opposed to laughter. Ipapa unenge uchisekwa as you comment yet its so true.

Tonyieus B. Lampard - 17 March 2016

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.