Zimbabwe increases fuel prices again, but pumps remain dry
The unrelenting price hikes are further burdening Zimbawean businesses, forced to use expensive diesel generators in the rolling power cuts
22 July 2019 - 12:09
byNelson Banya and MacDonald Dzirutwe
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An employee holds a gas pump at a petrol station. Picture: REUTERS/ PAULO WHITAKER
Harare — Zimbabwe hiked fuel prices on Monday for the second time in a week but most pumps remained dry, with no end in sight to shortages that are helping drive inflation rapidly higher and which have led to protests about the cost of living.
The Zimbabwe Energy Regulatory Authority said a litre of petrol would now cost Z$7.45, up 22% from Z$6.10. Diesel now costs Z$7.19 a litre, a 23% rise.
With inflation soaring, economic analysts say increases in fuel prices are adding to price pressures, especially as rolling electricity cuts are forcing businesses to use expensive diesel generators to power their operations.
Diesel and petrol prices have gone up by 456% this year, in line with a slide in the value of the local RTGS currency, renamed the Zimbabwe dollar last month.
The biggest fuel price hike in January, a 150% increase, triggered violent protests by Zimbabweans. More than a dozen people were killed when the army clamped down on the unrest.
On July 13, fuel prices were hiked by up to 16% after finance minister Mthuli Ncube said fuel was considerably cheaper than in neighbouring countries. Ncube has said he would like to see the price increase to the equivalent of $1 a litre.
The Zimbabwe dollar was trading on Monday at 8.88 against the greenback on the official interbank market, little changed from last week. On the black market, $1 fetched Z$10.5.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Zimbabwe increases fuel prices again, but pumps remain dry
The unrelenting price hikes are further burdening Zimbawean businesses, forced to use expensive diesel generators in the rolling power cuts
Harare — Zimbabwe hiked fuel prices on Monday for the second time in a week but most pumps remained dry, with no end in sight to shortages that are helping drive inflation rapidly higher and which have led to protests about the cost of living.
The Zimbabwe Energy Regulatory Authority said a litre of petrol would now cost Z$7.45, up 22% from Z$6.10. Diesel now costs Z$7.19 a litre, a 23% rise.
With inflation soaring, economic analysts say increases in fuel prices are adding to price pressures, especially as rolling electricity cuts are forcing businesses to use expensive diesel generators to power their operations.
Diesel and petrol prices have gone up by 456% this year, in line with a slide in the value of the local RTGS currency, renamed the Zimbabwe dollar last month.
The biggest fuel price hike in January, a 150% increase, triggered violent protests by Zimbabweans. More than a dozen people were killed when the army clamped down on the unrest.
On July 13, fuel prices were hiked by up to 16% after finance minister Mthuli Ncube said fuel was considerably cheaper than in neighbouring countries. Ncube has said he would like to see the price increase to the equivalent of $1 a litre.
The Zimbabwe dollar was trading on Monday at 8.88 against the greenback on the official interbank market, little changed from last week. On the black market, $1 fetched Z$10.5.
Zimbawean companies face closure over severe power cuts
Why is Zimbabwe’s inflation rate still climbing?
Is Zimbabwe doomed to repeat its past?
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