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Ivan Zhakata
Herald Correspondent

FUEL prices continue to tumble much to the relief of motorists and also signalling the likelihood of a drop and stabilisation in prices of basic commodities as the Government continues to cushion the populace against global shocks.

Yesterday, the Zimbabwe Energy Regulatory Authority (ZERA), announced a further reduction in the price of  both diesel and petrol, a development that was welcomed by motorists and the commuting public.

The price of petrol has been reduced from US$1.61 to US$1.60 per litre while diesel is now US$1.74 down from US$1.76 per litre.

There is now an option to purchase fuel using the local currency with petrol costing $710.60 and diesel $774.15.

Motorists have commended the Government for the falling fuel prices saying this has made it easier for them to conduct their businesses.

They expressed satisfaction, not only with the fuel prices but also its availability on the market, despite the fact that across the globe, even in the so-called developed countries, fuel prices have been soaring because of the Russian/Ukraine conflict that has disrupted global supply chains.

Harare motorist Mr John Mapondera said he felt relieved with the drop in fuel prices, especially with the option of using local currency to purchase fuel.

“I do not have to worry about where I can get the United States dollars to buy petrol as I can swipe or pay with EcoCash. This is a very welcome decision and I would like to commend the Government for this move,” he said.

Another Harare resident, Mrs Loreta Dube said the reduction in fuel prices will make it easier for her business operations.

“I am very happy with the reduction in fuel prices and I hope they will remain stable for a longer period. The Second Republic is doing a lot of things to improve our lives and the country at large and I would like to thank President Mnangagwa for taking care of his people,” she said.

Miss Tadiswa Motsi, who runs a boutique in Harare city centre, said the reduction in fuel prices was a step in the right direction.

“If fuel prices continue to rise, this will affect everything. I am relieved that while fuel prices are rising elsewhere, in Zimbabwe Government has come up with measures to ensure its stabilisation,” said Miss Motsi.

Mr Tavonga Chikura echoed the same sentiments and said he hoped the fuel prices would continue to fall.

“We are very happy with the dropping fuel prices and we hope they will go down again to the extent that no one has to think twice when it comes to purchasing fuel,” he said.

Economists said the fuel price downward review will in the long run result in competitiveness in the prices of basic commodities and eventually lead to their reduction.

In an interview, economist and chief executive of diversified business enterprise, Bullion Group, Mr Persistence Gwanyanya, said in the long run they expected fuel prices to be reduced to the level of those in the regional markets.

“The increased competitiveness in the fuel industry has also contributed to the reduction in fuel prices. What is more important is that the levy which the Government reduced led to the reduction in the prices. The prices would have been higher had it not been for the reduction of that levy,” he said.

Mr Gwanyanya said the reduction in fuel prices will lead to the competitiveness in prices of basic commodities.

On the other hand, retailers said fuel price reductions will result in a decrease in the prices of basic commodities as fuel has a bearing on transportation costs, one of the major cost drivers.

The president of the Confederation of Zimbabwe Retailers, Mr Denford Mutashu, said the reduction in fuel prices will improve business for retailers.

“The reduction of fuel prices by the Government is a good move which has resulted in reduced transportation costs. We are now looking at a reduction in the prices of goods such as cooking oil, sugar and salt among others. We have responded positively as fuel is one key cost drivers. The Government has made sure that the price is not only reduced but the fuel is also available.

“It is something that has to be applauded. We have been having engagements with the Government and we applaud the move,” Mr Mutashu said.

Since the full conflagration of the Russian/Ukraine conflict, global fuel prices have skyrocketed and Zimbabwe, which is landlocked, has not been spared.

However, President Mnangagwa has introduced a raft of measures, including a reduction of taxes on fuel, that have cushioned the ordinary citizen.