THE Zimbabwe Energy Regulatory Authority (Zera) yesterday announced fuel price increases which saw diesel 50 going up from $105,56 to $111,77 per litre, while petrol blend (E10) has increased by $8,14 from $104,82 to $112,96 per litre.
The prices in United States dollars increased by five cents from US$1,27 to US$1,32 per litre for Diesel 50, while petrol increased by eight cents from US$1,26 to US$1,34 per litre.
Zera last increased fuel prices on February 5 after free on board (FOB) prices had risen by 7% in January.
“The FOB is cost of shipping the product and as a net importer of fuel, any rise in FOB results in a price increase for the product. Operators may sell at prices below the cap depending on their trading advantages,” Zera said.
Africa Round Table chief executive officer Kipson Gondani said: “Small increases in fuel have a multiplier effect on the cost model of our economy and this has an inflation impact.”
Economist Kingston Kanyile said this would impact on the cost of production.
“With continuous fuel increases, all targets of achieving double-digit inflation at around 10% will not be achieved,” he said.
“What is important is for the government to lower taxes, the 1,5% to 2% fuel increase has a huge bearing on people. The government will need to increase wages for its employees to absorb the costs.”