Zimpapers Logo

Mr Mbiriri

Fuel wholesalers and retailers who speculatively increase prices face punishment from Government, Secretary for Energy and Power Development Patson Mbiriri said.
Government does not foresee an increase in the price of fuel. This was after speculation that fuel prices would increase following the promulgation of Statutory Instrument 80 of 2014.
“The Ministry of Energy and Power Development is cognisant of the importance that fuel plays in economic development and of the inflationary effect of increases in fuel prices.

“Fuel prices are thus kept within the parameters of the fuel pricing model agreed to between the ministry and the oil industry.
“Dealers caught overcharging get a penalty for their actions,” he said in a statement.

Statutory Instrument 80 of 2014 reads: “The selling price by a petroleum company on any petroleum product shall not exceed oil company purchase price plus seven per centum of the oil company purchase price.

“The price should also be a minimum of six United States cents ($0,06) for every litre or a maximum of seven per centum of the oil company’s selling price, in the case of the retail outlet.”

There were therefore concerns that due to the new regulations fuel dealers would have a legal leeway to explore the remaining 3 percent from the current four percent.

But Mbiriri said the minimum margin of 6 cents per litre is within the parameters that were already obtaining before the promulgation of the Statutory Instrument 80 of 2014.

He added that competition in the fuel retail business would also ensure that the prices remained at present levels.
‘’Because of this, the Ministry does not foresee any increase in fuel prices arising from promulgation of Statutory Instrument 80 of 2014,’’said Mr Mbiriri. – BH24.