18 January 2018
LATEST: Bennett in fatal chopper crash?
Discipline politically unruly chiefs: group
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
Economy: the need for a paradigm shift
Trump rage ignores truth: A response
Zera in audit to establish correct fuel pricing
22/11/2014 00:00:00
by The Source
Green Fuel launches blended petrol
Mangoma freed on US$5k bail
Mangoma to stay in jail
Tsvangirai fury over Mangoma
Energy Minister Mangoma arrested
Diesel shortage hits Harare
Fuel shortages: Biti, Mangoma clash
Diesel hoax woman jailed
Diesel mystic: I wasn't running
Diesel con n’anga nabbed
'Diesel mystic' faces jail

THE Zimbabwe Energy Regulatory Authority (Zera) is auditing fuel firms as it tries to establish the correct pricing for fuel in the economy, an official said on Friday.

Oil companies stand accused of profiteering as fuel prices in the country have largely remained unchanged while international oil prices have dropped by about 30 percent since June.

Petrol prices are ranging between $1.47 and $1.56 per litre while diesel is costing between $1.36 and $1.46 per litre.

But locals have questioned why local companies are non-responsive to global changes which is not the case in neighbouring countries.

Local fuel companies are only known for adjusting prices upwards but rarely, if ever, reduce them regardless of what happens on the global market.

Zera chief executive engineer, Gloria Magombo told journalists on the sidelines of a meeting with the fuel sector that the regulator would conclude the audit before the end of the month which will be used in mapping the way forward.

“The prices differ depending on where they (fuel companies) are sourcing the fuel and it also depends on volumes,” Magombo said.

“But we are auditing them to see what exactly is the price at which they are buying the fuel. We have already audited four or five big companies.”

Experts in the sector estimate that oil companies are on average currently importing fuel, both petrol and diesel, at prices below $0.75 per litre.

But during the meeting, players in the sector said it was impossible for fuel prices in Zimbabwe to automatically adjust to drops in international prices due to the country’s peculiar circumstances.

“It will be folly of us to expect an alignment to international price movements,” said ComOil managing director Lovemore Mazero.

“This is because of the challenges that we are facing as an economy, some of which are not related to international prices.”

Some of the challenges, he said, included high transportation costs.

Other players said oil companies had bought stocks in advance at higher prices and as a result could not slash prices based on changes on the international scene.

“Some want to try and recover from the past thin margins so they do not immediately reduce prices,” said one player.

Others played on the fact that Zimbabwe was a landlocked country, as a result it could not do what countries such as South Africa and Namibia, which are closer to ports were able to do.


But Magombo said the fact Zimbabwe was landlocked could not be used as an excuse as the same oil companies in the past used to adjust prices, up or down, in reaction to international price movements.

“If it used to happen in the past, why can’t it happen now,” she queried.

She said oil companies must also be fair to consumers who were also very much aware of what is happening on the international scene.

Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker