Zimbabwe fuel prices to track FOB, exchange rate

By Staff reporter | 03 Sep 2019 at 14:50hrs
FUEL prices will continue to track the movement of the FOB (free on board), that is the price of fuel when it arrives at the ports, and the exchange rate structure set by the Reserve Bank of Zimbabwe (RBZ), Zimbabwe Energy Regulatory Authority (Zera) acting chief executive officer (CEO) Eddington Mazambani has said.

This comes after diesel and petrol prices, for the first time this year, dropped yesterday from $10,32 to $10,25 and $10,01 to $9,86 respectively.

Mazambani told the Daily News that the significant price decrease is on the back of the tumbling FOB although the exchange rate chargeable to petroleum operators increased to $8,5: US$1 from $7,5: US$1.

"The fuel price will follow the FOB but we look at the FOB together with the exchange rate. The exchange rate for duty increased but the FOB decreased and overall fuel decreased because the FOB decreased significantly despite the increase in the exchange rate.

"Currently for the past two weeks the exchange rate for procurement is 8,5 ($8, 5: US$1). So this is dependent on the structure (exchange rate) put in place by RBZ," he said.

In a previous statement, Mazambani said the country should expect a weekly upward or downward review of the pump price of fuel depending on the exchange rate and the FOB.
Meanwhile, the global average price of fuel around the world according to International Energy Agency (IEA) is US$0,97 per litre.

This comes as Energy minister Fortune Chasi has said government has instructed Zera to investigate the blending of fuel being sold at service stations around Zimbabwe.

This comes as motorists have been complaining about the quality of blended petrol being sold in the country amid concerns that there may be foul play.          

"We have been blending on mandatory up to E20 and there is a trail of records to support this," he told delegates at the Institute of Chartered Accountants of Zimbabwe's Winter School and Investor Attraction Conference in South Africa over the weekend.

"However, some say that they may be something happening at the fuel stations and we are currently investigating this. I have since instructed Zera to look into the situation to find out exactly what is happening. This is in response to the complaints that we are cheating and so on," the minister said.

In June, government increased the mandatory ethanol blending of unleaded petrol from 10 percent to 20 percent or E20.



WhatsApp Newsletter

Follow us

Latest Headlines