ZERA has just reviewed fuel prices for diesel and petrol effective from the 25th of April 2022. The previous fuel prices hike was about a month ago when the prices went down. That was after the global fuel crisis that had been triggered by Russia’s invasion of Ukraine eased a bit. This latest fuel prices hike constitutes an increase. This time around ZERA did not explicitly indicate why the prices have been increased. They only indicated the usual: ‘prices have been set in accordance with oil price patterns on the international market…’ Let us take a close look at the latest review.
ZERA Petroleum Prices – April 2022
| ZWL | US$ | |||
| Diesel 50 (ZWL/Litre) | Blend E10 (ZWL/Litre) | Diesel 50 (US$/Litre) | Blend E10 (US$/Litre) | |
| Maximum Prices | 264.77 | 252.40 | 1.71 | 1.63 |
Previous
| ZWL | US$ | |||
| Diesel 50 (ZWL/Litre) | Blend E0 (ZWL/Litre) | Diesel 50 (US$/Litre) | Blend E0 (US$/Litre) | |
| Maximum Prices | 213.90 | 213.49 | 1.60 | 1.59 |
Change
| ZWL | US$ | |||
| Diesel 50 (ZWL/Litre) | Blend E10 (ZWL/Litre) | Diesel 50 (US$/Litre) | Blend E10 (US$/Litre) | |
| +50.87 | +38.91 | +0.11 | +0.04 | |
As usual, ZERA indicated, ‘Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided by the fuel pricing regulations.
The other notable change is that the blending ratio has increased from E0 to E10. In its communique, ZERA did not explain why it decided on making that adjustment.
At A Glance
US Dollar Prices
| Month | Blended Petrol | Diesel |
| Feb 2022 | 1.41 | 1.38 |
| Mar 2022 | 1.51 | 1.51 |
| Mar 2022 | 1.67 | 1.68 |
| Mar 2022 | 1.59 | 1.60 |
| Apr 2022 | 1.63 | 1.71 |
ZWL Dollar Prices
| Month | Blended Petrol | Diesel |
| Feb 2022 | 152.87 | 149.55 |
| Mar 2022 | 195.72 | 195.99 |
| Mar 2022 | 216.78 | 218.01 |
| Mar 2022 | 213.49 | 213.90 |
| Apr 2022 | 252.40 | 264.77 |
Overall, fuel in Zimbabwe remains mostly available. It seems like ages ago when queuing for fuel was the order of the day. However, the public keeps raising concerns about the prices of fuel in Zimbabwe. Yes, the government always tries to rationalize the prices but it is as best sketchy. Part of what affects our fuel prices is the taxation element. The tax is collected on fuel imports and its supply chain is too high and should be reviewed downwards. As much as there can be price movements on the international market, taxes are the government’s prerogative.
The other disturbing thing about the latest fuel price review is that it will drive the prices of goods and services up. Already this past week we saw the price of bread jumping up to US$2 (based on the interbank exchange rate). Based on the parallel market rate, the price is now over US$1. Even when you look across the range of basic commodities, things are becoming more expensive. It continues to be a huge struggle for the many who earn incomes in the Zimbabwean dollar. The Zimbabwean dollar is perpetually losing value while the government still insists on widening its use. There have been several policy shifts enacted lately that are aimed at driving up the use of the Zimbabwean dollar. We can only pray for things to get better.
