Fuel prices to continue rising each week in Zimbabwe

Business Top Stories Zimbabwe

Takudzwa Chihambakwe 

Zimbabweans have been told to brace for more fuel price hikes. Presenting oral evidence in parliament on Thursday the Zimbabwe Regulatory Authority, (ZERA) Chief Executive Officer, Eddington Mazambani revealed that prices of fuel will continue to rise each week.

He noted that the cause in price shifts is based on a new tax regime on fuel importation. 

In the past, ZIMRA used to charge a fixed figure as tax but now it has shifted to percentage based tax model.

“This tax is charged on costs of bringing in the fuel. We also need to factor in the exchange rate into the figure. These are some of the factors causing the shift in prices,” said Mazambani.

He also added that rumours on social media saying there was a deadlock in transportation costs between ZERA and oil companies were false.

However, Mazambani highlighted that there was nothing new about fuel going up each week.

“During the US dollar era we used to have different prices of fuel each week. However, I believe the difference is that we were dealing with small figures then, hence it was not too pronounced. 

“But, since we are using the RTGS dollars now the changes are more pronounced.”

Meanwhile, Mazambani said the electricity situation in the country remains dire.

“We have a daily gap of 1097MW as at today (Thursday). Kariba is operating at 30% capacity whilst we are only running three out of six units at Hwange,” revealed Mazambani.

He highlighted that unit six at Hwange should be up this September.

“Hwange power plant is now old and that’s why we keep having break downs there. When unit six comes back online, it should give us 160MW.”