Fuel prices are likely to go down early next year as the National Oil Infrastructure Company (NOIC) promised to reduce pipeline charges according to the Confederation of Zimbabwe Industries (CZI).
NOIC is expected to reduce pipeline charges from 85 cents to 65 cents with the effect from January.
“Ideally this reduction should filter to consumers, through a reduced pump price,” states CZI on its website.
“Fuel prices have slightly gone up 2 cents, and the margin for retailers have since moved up from 6 cents to 8 cents per litre.”
Fuel prices have been affected by cash crunch just like any other basic goods.
“Some service stations are now giving discounts to customers paying cash,” CZI reports.
“They now have a cash price and a different price for those paying using POS machines and there is a limit for those paying using it.”
Consumers are adding US$2 or even more to the normal prices when buying with mobile money on local stores and kiosks. Fuel dealers are also reportedly engaging into activities that can damage vehicles engines. It is said that fuel is being mixed with other substances at service stations.
“Some fuel dealers are reportedly mixing diesel/petrol with paraffin because paraffin does not pay duty. This poses major risks to engines,” CZI says.
Zimbabwe is said to be using US$ 2 million to import fuel every day. Besides fuel, all prices have been going up in Zimbabwe. It is not clear whether the price increases are linked to cash shortages or the rising fuel prices.