Price of petrol has gone up by a margin of 33 percent to Zwl 28.96 while that of diesel marginally increased to Zwl 24.93 from Zwl 21.52.
The Zimbabwe Energy Regulatory Authority (Zera) confirmed last night.
Dealers may sell below the cap price depending on their trading advantages.
This comes amid worsening of fuel shortages in the country during the past few weeks prompting speculation of an impending increase.
Zimbabwe’s fuel has been trading among the cheapest in the region translating into just around US 0.35 per liter in real terms as the local currency continues to depreciate.
Analysts have however welcomed the decision to increase price of fuel with expectations that the move will improve its availability on the market.
They predict supply will remain subdued because of the country’s foreign currency reserves situation that remains dire.
On the flip side, there are concerns that the increase will pave way to a wave of price increases across all economic facets as fuel is a crucial component of the production cost.
Already inflation is hovering close to a 1000 percent, year on year.