Russia-Ukraine conflict triggered fuel hike: Minister Zhemu

By ZBC Reporter
GOVERNMENT has clarified how local fuel prices have been affected by the ongoing situation in Ukraine, which saw the Zimbabwe Energy Regulatory Authority (ZERA) reviewing prices by over 30 percent last week.
The daily fluctuation of oil prices on the international market has direct spill over effects on the cost build-up of local fuel prices as Zimbabwe is a net importer of the commodity.
In an interview on ZBC News and Current Affairs programme, Face the Nation this Tuesday, Energy and Power Development Minister, Honourable Soda Zhemu explained the reason behind the astronomical fuel price increases in recent weeks.
“As you are aware that as a country we depend 100 percent on our fuel needs save for the ethanol component, we are subjected to any fluctuations of oil prices on the international market and what we witnessed last week is that we a barrel of oil shot to over 130 us dollars per barrel and obviously we had to adjust our local prices,” said Minister Zhemu.
Asked on why Zimbabwe’s fuel prices are on the top of the pile in the SADC region, Minister Zhemu provided an expert analysis.
“Of course our prices are sort of way higher than what obtains in other SADC countries because we levy other costs such as the Zinara debt, road levy and the carbon levy, which leads to a seemingly high price,” he explained.
Oil prices rose sharply to around 130 US dollars per barrel last week but have receded trading at below 100 dollars per barrel as of Tuesday’s spot prices therefore local prices are expected to follow suit.

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