Zimpapers Logo

Tapiwanashe Mangwiro
Senior Business Reporter
The Zimbabwe Energy Regulatory Authority (ZERA) has announced reduced fuel prices for November, in a development expected to benefit individual consumers and businesses.
Petrol prices have been cut to US$1,51 per litre from US$1,53 in September, but remain slightly higher than the US$1,49 price in October 2024.
Diesel is now selling for US$1,52 per litre compared to US$1,55 per litre in September, but this remain higher than the US$1,50 per litre price in October.
The reduction of fuel prices is in line with softening international oil prices amidst the instability in the Middle East.
ZERA’s pricing model is informed by average international oil prices in the previous month. The price of Brent crude oil fell steadily throughout October, starting at US$73,56 on October 1 and dropping to US$71,27 by October 28. This downward trend, following a high of US$77,28 in early September, has allowed ZERA to pass on some savings to local consumers.
The adjustment should bring some relief to consumers in light of the tough economic conditions and other high-cost obligations such as high electricity tariffs and the cost of alternative energy.
The price reduction has been welcomed by several key economic players.
Economist Tinevimbo Shava highlighted the potential positive effects for Zimbabwe’s manufacturing sector, which has struggled with high input costs for years.
“Lower fuel prices reduce transportation costs, which in turn lowers overall manufacturing expenses. This has a ripple effect across the economy, as lower production costs can ultimately lead to more affordable products,” Mr Shava noted.
“It can also improve the standard of living, as reduced transport and goods costs mean consumers can better manage their budgets.”
The price cuts also come as a boost for the retail sector, which has faced mounting logistical challenges in recent years.
Denford Mutashu, president of the Confederation of Zimbabwe Retailers (CZR), emphasised the importance of stable fuel prices for businesses relying on logistics and distribution.
“Reduced fuel costs directly benefit retailers by lowering delivery costs,” Mr Mutashu stated.
“In an environment where transportation is a key part of getting goods to the market, any cost reduction is valuable. It means retailers can operate more efficiently and potentially offer more competitive prices to consumers.”
The decline in fuel prices may bring some relief and optimism among consumers, as inflationary pressures due to the recent currency devaluation continue to present challenges.
Given ZERA’s forward-looking approach of basing prices on international averages, consumers and businesses alike are hoping for more stability in fuel costs as global oil prices fluctuate.