The Zimbabwe Energy Regulatory Authority (ZERA) has intensified a nationwide compliance exercise targeting service stations charging above approved pump prices...
The Zimbabwe Energy Regulatory Authority (ZERA) has intensified a nationwide compliance exercise targeting service stations charging above approved pump prices following the latest reduction in fuel costs announced by Government.
Enhanced compliance teams are being deployed across the country to monitor fuel prices and take legal action against operators found violating pricing regulations. The move comes after reports emerged that some fuel retailers were charging amounts above the official prices announced by the regulator.
ZERA recently reviewed fuel prices downwards, with Diesel 50 now selling at US$1,99 per litre while Blend E20 is retailing at US$1,98 per litre. In local currency, diesel is pegged at ZiG53,26 per litre and Blend E20 is selling at ZiG53 per litre. The new prices took effect on Friday and will remain valid for the next two weeks.
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Speaking on the latest measures, ZERA chief executive Mr Eddington Mazambane said the authority already has regional compliance officers who regularly monitor fuel prices and fuel quality across the country.
“We have regional compliance officers who enforce issues to do with pricing and quality of fuel products. They always do rounds to check fuel prices,” he said.
Mr Mazambane said reports that some service stations were charging above approved fuel prices had prompted the regulator to increase enforcement efforts. He said operators found violating regulations would face prosecution.
“But lately we have had the confusion which happened when we heard that there are some service stations that are selling fuel above announced fuel prices. So we are going to enforce compliance to fuel prices at the same time prosecute those charging above regulated prices,” he said.
According to Mr Mazambane, ZERA maintains a strict monitoring framework aimed at ensuring consumers receive fuel at approved prices while maintaining quality standards throughout the supply chain. The authority is also monitoring developments on the international oil market following recent volatility linked to geopolitical tensions in the Middle East.
“At the moment we are reviewing fuel prices every two weeks because of the disturbances that happened in the Middle East, but when fuel stabilises, as a country we always review the price of fuel once every month so that we are as close as possible to the fuel market prices,” said Mr Mazambane.
The latest reduction in fuel prices follows improving conditions on the global oil market after the reopening of the Strait of Hormuz, one of the world’s key shipping routes. Earlier disruptions and tensions in the Middle East had pushed crude oil prices higher, forcing Zimbabwe and several other countries to increase fuel prices to maintain supplies.
Energy and Power Development Minister July Moyo recently said Government remains committed to ensuring that consumers benefit from declining international oil prices while maintaining adequate fuel supplies. In response to previous global supply disruptions, Government introduced measures such as maintaining strategic fuel reserves, reviewing fuel taxes and increasing ethanol blending levels from E5 to E20.
Economists say lower fuel prices are expected to benefit different sectors of the economy because fuel is a major production cost in transport, agriculture, mining and manufacturing. Reduced fuel costs can also help lower operating expenses for businesses and ease pressure on households facing rising living costs.
Mr Mazambane expressed hope that the reduction in fuel prices would eventually lead to lower prices for goods and services that had previously increased because of rising fuel costs.
“One would expect that the fares of commuter omnibuses and other goods and services which were increased due to the increasing prices also will have to be reduced,” he said.
