Zimbabweans have expressed outrage over the recent fuel price increase announced by the Zimbabwe Energy Regulatory Authority (ZERA) at a time when global fuel prices are going down.
Fuel prices have been static for several weeks but on Saturday, ZERA announced that the prices of diesel and petrol had been raised with effect from 5 April 2020.
According to a circular issued by ZERA, diesel now costs $21.52 while petrol costs $21.77. This means that for the first time in over a year, a litre of petrol now costs more than that of diesel.
Meanwhile, the Minister for Energy and Power Development, Fortune Chasi, says he will give an explanation on why the government, through ZERA, has increased fuel prices when global crude oil prices have been on a decline. Said Chasi:
FUEL PRICE INCREASE: the question being asked as to why our fuel price is going up when international prices are going down is a legitimate one. I will endeavour to give an explanation later today.
Prices of fuel have been going down over the past several weeks amid decreased demand and an oil price war sparked in part by the spread of the coronavirus.
According to US News, in March, Saudi Arabia, one of the world’s major oil exporters, announced plans to flood the market with oil in an escalation of a price war with Russia after the latter refused to go along with a plan to cut production in light of decreased demand.