Business Briefs

Petrol, diesel prices to rise above US$1,35 this June: ZERA

The Zimbabwe Energy Regulatory Authority (ZERA)has announced that there has been an increase of on the price of fuel on the international market and local capped prices for diesel and petrol were expected to both increase to over US$ 1.35 per litre in the month of June 2021.

However, ZERA urged operators to charge prices lower than the capped prices depending on their trading advantages.

ZERA said the demand for oil had increased following economic recoveries after most countries, including Zimbabwe, have rolled out Covid-19 vaccination programmes and implemented stimulus measures.

“However, ZERA is pleased to announce a decrease in the price cap for diesel from US$1.32 to US$1.30, while the petrol price cap will remain at US$1.33,” said the authority.

“There are still uncertainties associated with the Covid-19 pandemic that OPEC and other producing countries, led by Saudi Arabia and Russia, are only gradually producing more barrels of oil into a strengthening oil market, leaving the market in a persistent deficit.

“As a result, on the world market, there was a 3.50 percent increase in price of the International Benchmark- Brent crude oil, together with a 1.05 percent increase in petrol price and a 2.66 percent increase in the price of diesel.

“Due to the above developments, the ZERA’s capped prices for diesel and petrol were expected to both increase to over US$ 1.35 per litre in the month of June 2021.

“ZERA managed to accomplish this feat through an innovative and rigorous review of the price build up with the aim of achieving the least cost pump price for consumers.

“ZERA will continue with its mandate and efforts to protect consumers and minimize the increases in local fuel prices in the face of potential rising oil increases and increased worldwide demand for fuel, as Covid-19 restrictions ease and economies recover,” read the statement. ■

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