Almost weekly, some changes occur for some goods or services in Zimbabwe. This is hardly surprising when you look at the current state of the economy. We are currently looking at an exchange rate that is approaching US$1: ZWL$1000. Lately, the ZWL$ was hard to come by due to the scramble by parents and guardians to pay exam fees. The parallel market was charging US$1 at around ZWL$750 or ZWL$850. This was for people looking for ZWL$ to pay exam fees at a government rate of US$1: ZWL$455. Interesting development but that will fizzle out or has already fizzled out.

Petroleum Prices – Effective From 27 July 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

 

727.69

 

667.43

 

1.76

 

1.61

The old prices were as follows:

 ZWLUS$
 Diesel 50

(ZWL/Litre)

Blend E15

(ZWL/Litre)

Diesel 50

(US$/Litre)

Blend E15

(US$/Litre)

Maximum

Prices

 

669.62

 

659.80

 

1.88

 

1.77

Magnitudes Of Change

 ZWLUS$
 Diesel 50

(ZWL/Litre)

Blend E15

(ZWL/Litre)

Diesel 50

(US$/Litre)

Blend E15

(US$/Litre)

Maximum

Prices

 

+58.07

 

+7.63

 

-0.12

 

-0.16

Blending Ratio Increased

ZERA also announced that the blending ratio had been increased from E15 to E20. This was a long time coming though. ZERA had a while back indicated that the blending ratio would get to E20 by the end of June. However, the blending ratio was increased from E10 to E15 and kept there for a while. I have covered some of the concerns on ethanol blending in previous articles. There is even speculation that saying it is E20 might not necessarily mean it is E20. It could be E50 and motorists will not be able to objectively tell.

There Is Nothing To Celebrate Here

The US dollar prices have once again gone down: the price of diesel per litre has gone down by US$0.12. The price of petrol per litre has gone down by US$0.16. On paper, this sounds great but as you will soon see, it means nothing at all.

This is not necessarily something to celebrate, let me explain.

ZERA always says, “Operators may sell the petroleum products below the prescribed prices depending on their trading advantages…” Being someone who closely follows these things I can tell you many fuel stations do not adhere to this. All along they have been charging way beyond the prescribed price caps. This means these latest fuel prices mean nothing at all.

I stay just outside Masvingo and I am still to find any fuel station that has been charging fuel in line with ZERA updates. Right now there is no fuel station I have seen charging the following per litre (i.e. the latest official prices:

Diesel – US$1.76 (or less)

Petrol – US$1.61 (or less)

This has always bothered me and I recently decided to reach out to ZERA. Their response was:

Clive Masarakufa, Kindly report the specific stations to Zimbabwe Energy Regulatory Authority – ZERA on WhatsApp line +263 772 161 966.’

This is something I am going to do by doing a sweep of fuel stations in and around Masvingo. I do feel though that it could be all fuel stations. I do not quite understand how ZERA cannot be aware of something that is happening on a grand scale. What is your experience like in your respective areas, kindly share in the comments below.

That is what you need to know regarding this latest fuel prices update. Kindly comment below, indicating what fuel price movements have been like in your area. It is not fair that a regulatory authority announces official price caps and they are ignored. In essence, it makes the announcement of price reviews mere formalities far removed from what is on the ground.