ZERA Acting CEO Eddington Mazambani has indicated that fuel prices in Zimbabwe will be reviewed every week in line with the RBZ auction system.
The Reserve Bank of Zimbabwe started the USD auction system this week on Tuesday with over USD10 million allotted to bidders.
The highest bid rate was 100 whereas the lowest rate was 25. The average rate for the week is 57. Fuel prices were then adjusted according to the average rate of the week. The rate will change weekly after the end of the auction.
Fuel prices will consequently change as the rate changes. Zimbabwe Energy Regulatory Authority (ZERA) acting CEO Eddington Mazambani has confirmed the prices will change every week.
“We have had the exchange rate used for fuel different from the one in the market, but when using the RBZ auction-rate fuel prices will be reviewed weekly,” Mazambani said.
The ZERA CEO has vowed to intensify efforts to curb fuel hoarding by fuel dealers who do not sell their fuel anticipating a change in prices. The habit is likely to increase as fuel prices will most likely be rising weekly.
“Within the licencing of fuel stations, hoarding is illegal. We intend to intensify our dipping off depots commencing Tuesday,” Mazambani said.
Fuel situation in Zimbabwe not changed by prices
The fuel situation in Zimbabwe has not changed since the price increase of over 300% was announced. Queues in the country are still long and some motorists are spending over a day in a queue to get 20 litres of petrol.
Zimbabwe petrol stations have been characterised of long queues that remain during the night.
Fuel prices and Ethanol
There has been a major concern over the prices of ethanol used to blend petrol in Zimbabwe. Ethanol prices have contributed to around 75% of the fuel prices announced this week. ZERA has since started engaging ethanol producers to address the issue.
‘We’re currently engaging with Ethanol Producers so that we establish the true cost of producing ethanol’ says Mazambani.