Home LOCAL NEWS Possible fuel price hike triggers long queues

Possible fuel price hike triggers long queues

FOREX SHORTAGES TRIGGERS FUEL CRISIS, HARARE RUNS DRY

With the anticipation of a hike in fuel prices by the Government to avert artificial shortages; fuel queues in the capital are long as motorists try to get the underpriced commodity before the hike.

Zimbabwe’s fuel supply situation has been quite challenging for some time now with analysts citing low fuel prices compared to those obtaining in the region.

With signals by Government that a new realistic pricing structure is in the offing, scenes of motorists jostling for the cheap commodity are common before the price hike.

Commissioning Petrotrade’s solar-powered service station in Mabvuku this Friday, Energy and Power Development Minister Advocate Fortune Chasi said the low prices stimulated rent-seeking behaviour in the fuel sector causing artificial shortages.

“We are proposing that a new pricing structure that will put an end to these shortages because a lot of fuel was being diverted to the black market,” said the minister.

Motorists concurred with Minister Chasi saying a pricing problem is contributing to the challenge. A sophisticated syndicate of dealers is accused of diverting fuel from service stations taking advantage of low prices and reselling it on the black market.

Zimbabwe uses about 1,5 billion litres of fuel annually, the same amount as Ethiopia, which has 100 million people, six times as many as Zimbabwe.

The Reserve Bank of Zimbabwe has reverted to a market-based us dollar exchange rate regime which once operational is expected to help reduce distortions responsible for artificial shortages.

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