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Herald Reporter

The political crisis between Russia and Ukraine has created bottlenecks in global fuel supplies, resulting in many countries the world over, among them Zimbabwe, adjusting upwards prices of the commodity.

The Zimbabwe Energy Regulatory Authority (ZERA) announced today that petroleum products prices went up with diesel now pegged at US$1, 68 while blend petrol now costs US$1, 67 per litre.

The rise in fuel price is the second one in five days after diesel and petrol prices rose to $1, 51 per litre last Friday as the crisis Ukraine saw some local fuel dealers expressing fears they would not restock if they continued selling using last week’s prices.

Addressing journalists today, Energy and Power Development Minister Zhemu Soda said the price review was meant to avert a potential shortage of fuel after traders threatened to withdraw the products from the market.

He said the price traders were selling fuel since last review on March 5, was now below the cost of replenishing stocks.
Since the last review, the cost of importing petrol and diesel went up by 10 and 11 percent respectively.

ZERA will review fuel prices on a weekly basis.

“It a volatile situation,” said Minister Soda.

“The war situation in Ukraine is constraining production and international movement of the commodity. It is a precarious situation…beyond our control. Reviewing prices on a weekly basis is to ensure continuous availability of fuel on the market.”

The adjustment in fuel prices follows a hike in brent crude oil which has now surpassed the US$130 mark per barrel, the highest price in over 14 years.

According to ZERA the prices have been set in accordance with the increasing oil prices on the international market.

“The fuel price increase has been prompted by international crude oil prices, which continuously went up following tensions in Eastern Europe and Government has had to subsidies the final price to cushion the economy,” said ZERA in a statement today.

The International Monetary Fund (IMF) last weekend warned price shocks would “have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses”.

Economists from around the world have since warned that the global shock brought about by the Russian – Ukraine political crisis may have unforeseen consequences on the global economy.