(Ecofin Agency) - In Zimbabwe, the prices of petrol continue to increase regardless of the decline in the international market. The price of petrol in September 2015, was close to $1, 40 while that of diesel was $1, 20. The Government had commanded fuel suppliers to reduce the price of petrol by 7cents and diesel by 5 cents which mean that the lowest price for petrol and diesel should be $1,28 and $1, 15 respectively.

According to Zimbabwe Energy Regulatory Authority (Zera)’s acting CEO, Eddington Mazambani, the global decline was not felt in the country due to the principal time between processing crude oil and importation. “Zimbabwe is using the United States dollar, so the fall of the international prices is not immediately felt in the economy due to the lead time between processing crude oil through to the actual procuring and receiving of products in the country. Currently, Zera commissioned the Petroleum Sector Pricing Study in order to review and update the current pricing models”, Mazambani said.

However, an analysis carried out on fuel pricing revealed that normal revenue made by fuel dealers on every litre of petrol and diesel sold was 6 cents, The Standard News reports.

Anita Fatunji