Petroleum Prices Marginally Drop
The Zimbabwe Energy Regulatory Authority (ZERA) has announced the new petroleum prices for the month of January which are slightly below the December figures while the blending ratio for petrol has been reviewed from E10 to E0.
The review comes two days later than the deadline for the monthly announcement of fuel prices set for the 5th of every month.
Diesel will now be sold at ZW$ 1.49.55 or US$ 1.38 from December price of ZW$ 150.31 or US$ 1.38. Petrol will now cost ZWL$ 152.87 or US$ 1.41 from ZWL$ 154.56 or US$ 1.42 in December.
“The public and operators are advised that the blending ratio has been reviewed from E10 to E0. Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided by the fuel pricing regulations,” said ZERA.
The authority has however not officially issued an explanation to the review of the blending ratio on petrol but sources in the energy industry told 263Chat Business that there are supply challenges of ethanol during this time of the year from the low-veld.
The Price of Liquefied Petroleum Gas (LPG) has also been lowered to ZWL$ 222.32 or US$ 2.05 down from December price of ZWL$ 225.92 or US$ 2.14.
The petroleum price decline was expected after average Brent Crude oil price decreased from US$ 83.00 to US$76.00 per barrel during the period under review largely due to the announcement by the USA to release up to 50 million barrels from the strategic petroleum reserve to boost supply as well as the emergence of the omicron variant, which prompted a worry about the new movement restrictions that would, as usual, reduce oil demand.