Fuel prices have marginally dropped but Zimbabweans are yet to enjoy the benefits of massive drop of the price of the commodity on the international market.
The government says cost build up structures is posing challenges on efforts to reduce the prices.Oil prices have been on a free fall globally to an extent of threatening the viability of the business.While the prices have dropped by almost half since January 2015, most Zimbabweans have to contend with just reading about it as the pricing regime has remained almost unchanged.
Energy and Power Development Minister Dr Samuel Undenge told stakeholders in the capital that factors such as the determination of fuel prices by traders at the port of delivery, pipeline costs, taxes and levies, administrative costs, distribution costs and profit margins are constraining efforts to reduce fuel prices for Zimbabwe in line with global trends.“The reduction in fuel prices is a cause for concern and we hope more can be done,” said Dr Undenge.
Besides tax introduced by the Finance Minister in early 2015, other costs have, however, remained almost constant.Other countries in the region who buy fuel from the same sources have, however, reduced the prices.
It is also not clear how much profits the fuel dealers make but experts say there is no justification in effecting the almost negligible reduction at a time oil prices are at an all time low in so many years.