The Zimbabwe Energy Regulatory Authority (ZERA) has deferred the announcement of new fuel prices for January citing on-going consultations at government level.
The energy regulator is supposed to review fuel prices by the fifth of every month in line with Statutory Instrument 270 of 2019.
“However, due to consultations that are taking place at Government level, as we monitor developments in the international oil markets, ZERA will issue a statement on the January 2022 fuel prices after the statutory set date,” said ZERA this morning.
“Fuel operators are therefore urged to continue trading as per the December 2021 fuel prices while consultations are being finalized. The January 2022 fuel prices will be announced in due course.”
In December, ZERA set the maximum pump price of diesel at ZWL$150.31 or US$1.38 per litre while that of petrol was capped at ZWL$154.56 or US$1.42 per litre.
Price of fuel is informed by international and local factors.
International factors include the fact that Zimbabwe imports both crude oil and finished products at a price set at the international level, including importation costs such as shipping costs.
Locally, currency stability informs the price of fuel in local currency.
The average Brent Crude oil price decreased from US$ 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.
Meanwhile, in neighboring South Africa, price of petrol and diesel dropped this morning on weaker average Brent Crude oil price.