The prices of fuel and LP gas have been reviewed effective 7 June 2022. This is 13 days since the previous fuel prices review. The previous review came after about 14 days. Not quite sure whether or not this means we will be seeing fuel price reviews every 2 weeks. This all comes at a time when inflation in Zimbabwe still continues to surge. Let us look at the latest fuel and LPG price changes. We shall also take a look at some noteworthy talking points.

Petroleum Prices – Effective 7 June 2022

The NEW prices are as follows:

 ZWLUS$
 Diesel 50

(ZWL/Litre)

Blend E15

(ZWL/Litre)

Diesel 50

(US$/Litre)

Blend E15

(US$/Litre)

Maximum

Prices

 

550.59

 

539.56

 

1.76

 

1.73

The OLD prices are as follows:

 ZWLUS$
 Diesel 50

(ZWL/Litre)

Blend E15

(ZWL/Litre)

Diesel 50

(US$/Litre)

Blend E15

(US$/Litre)

Maximum

Prices

 

499.56

 

481.02

 

1.74

 

1.68

ZERA once again did not cite the basis of this fuel prices review.

Changes

 ZWLUS$
 Diesel 50

(ZWL/Litre)

Blend E15

(ZWL/Litre)

Diesel 50

(US$/Litre)

Blend E15

(US$/Litre)

Maximum

Prices

 

+51.03

 

+58.54

 

+0.02

 

+0.05

Liquefied Petroleum Gas New Prices

The new LPG prices, calculated according to the Petroleum (Liquid Petroleum Gas Pricing) Regulations 90 of 2021 are as follows:

US$2.25 per kilogram or ZWL$702.28 per kilogram

Just like for fuel, LPG prices can be set below the price caps depending on trading advantages.

Let Us Discuss

Some Reminders

It was indicated that the blending ratio for petrol would be reviewed up to 20 percent, end of May. From the 20th of May 2022 the blending ratio was changed from 10 percent to 15 percent. Let me also remind you that the Energy and Development ministry came out rationalizing the reintroduction of ethanol blending. They specifically mentioned that increasing the blending ratio from 10 percent to 20 percent would reduce the petrol price by another US$0.07.

Where Are We Now?

It seems they are yet to change from 15 percent to 20 percent blending ratio, contrary to what they highlighted. Regardless, the price of petrol has gone up by another US$0.05. It is interesting when you do the math. They said increasing the blending ratio from 10 percent to 20 percent would reduce the petrol price by another US$0.07 right. Well, from when they reintroduced blending to now, the price of petrol has increased by over US$0.09. Mind you we are yet to even get to 20 percent and clearly the prevailing trend will not change. This clearly shows that saying that blending would reduce the price of petrol was a lie.

Moving ahead I think it will be interesting to see what happens. Blending is being insisted on due to the rationale of reduced fuel prices. Will the prices really remain down or we will still see increases and some other bases will be cited?’ When I once said that I strongly felt the Energy and Development ministry was not being entirely honest. I will not speculate as to why then blending is being insisted on yet it is clearly not benefiting motorists. One thing I do know is that blending overall disadvantages them in the long run. Have you also noticed that traditionally, diesel prices used to be lower than those of petrol? These days it is the other way round. Anyways, diesel 50 is lower sulphur content thus causing much less wear and tear to vehicle engines. Any thoughts or comments on the latest fuel prices review? Kindly share them by commenting below.