ZERA recently announced the new fuel prices effective January 2022. The previous fuel price review was in December 2021. Overall the price adjustments have been mostly marginal. You will notice that in the tables I will share with you later on. The other interesting update is the one on petrol blending. There have always been concerns regarding petrol blending in Zimbabwe. I am also touching on that later on in the article.
Latest Fuel Prices And Blending Update
In local currency, diesel now costs ZWL$149.55 per litre. Petrol now costs ZWL$152.87 per litre. In US dollars, diesel now costs US$1.38 and petrol is now US$1.41 per litre. ZERA also announced some changes about petrol blending. Here is what they said,
The public and operators are advised that the blending ratio has been reviewed from E10 to E0. Operators may sell 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.
NB LPG prices have also been reviewed: ZWL$222.32 or US$2.05 per kilogram.
Fuel Price Adjustments At A Glance
US Dollar Prices
A Discussion On Petrol Blending
In 2020 ZERA had to clarify matters on petrol blending. This stemmed from public outcry on how blending led to people spending more on petrol. This was because motorists were complaining that blended petrol was not lasting as long as it should. There were also complaints about how blended petrol damaged vehicles. ZERA justified blending saying it cut down on foreign currency obligations.
For example, E20 cut down the obligation by 20 per cent whereas E10 by 10 per cent. ZERA also said blending was beneficial in that it reduced the extent of pollution caused by the combustion of fuel. Despite the ZERA clarification people still maintained that blending was detrimental and had to be scrapped. It is quite interesting to note that finally, the decision to scrap blending has now come. It comes as a surprise because it would have been unimaginable back then this time would come.
What are your thoughts on this latest fuel price update? Particularly on the scrapping of ethanol blending, what are your comments? I think it was a good move to get rid of blending. There were just too many concerns on how legit the blending was. Some people even indicated that the actual blending ratios might have been higher than indicated.