There's No Justification To Increase Prices As A Result Of The Fuel Price Hike- Industry Minister

Industry and Commerce Minister Mangaliso Ndlovu told The Sunday Mail yesterday that Government and industry agreed that there was no need to increase the prices as a result of the recent fuel price hike.

Ndlovu said this was agreed during Thursday’s meeting between Government and industry. Said Ndlovu:

We made an important agreement with the industry players: that there is no justification whatsoever to increase prices as a result of a fuel hike. We agreed that the rebate system is a convenient mechanism to ensure that there are no extra costs that are passed on to the final consumer. We managed to dichotomise the issues at hand and we came up with an agreed position that fuel alone is not the major contributor to the cost of production. Fuel alone doesn’t account for more than 5 percent of total costs on average. It is only in the transport sector where the cost of fuel can lead to a direct upward variation of 40 percent.

Confederation of Zimbabwe Industries (CZI) president Mr Sifelani Jabangwe said there is no need there is no need for any price increase once the rebate is in place.

Related:

• “Fuel Price Increase Was Necessary And Remains Necessary”, Mnangagwa Says Despite Protests

• ED’s Statement On New Fuel Prices: $3.31 Petrol And $3.11 Diesel

• Govt Increases Fuel Prices

More: Sunday News