By 
When the war in Iran, “a far-away country”, broke out, the Zimbabwe government hastily increased the fuel price, after stating that they had more than 3 million litres in reserves, the move was received with much pain and agony by its industry and general citizens.
It was not the global war or pressure that got the price that high up, it was the deliberate government tax component that shot the fuel price up from $1. 77 to the current $2.17, a total 39% fuel hike in just one month.
Effectively this has ranked Zimbabwe as the country with the most expensive fuel in sub-Saharan Africa, still making it worse is the fact that the governemnt states that this is fuel price for reserve oil, not direct import affected by cost.
The Zimbabwe Energy Regulatory Authority (ZERA) increased the price of both diesel and petrol blend, effective 18 March, citing mounting cost pressures and the need to prevent fuel shortages and arbitrage.
In a notice released today (Wednesday), the regulator announced that Diesel 50 will now retail at ZiG52.19 per litre (US$2, 05), while blended petrol (E5) will cost ZiG55, 13 per litre (US$2, 17).
`This has greatly increased the cost of living, making life much more unbearable for already struggling citizens, with direct costs of transport, bread and basic commodities shooting up too.
However the devil is in the detail, its not fuel increase that has affected Zimbabwe, its the tax component of the fuel that is exorbitant and making it unbearable. While most governments have tried to cushion their citizens against the cost of living, our government thought of protecting the product by making it very expensive citing arbitrage effects.
“While Government ensures security of fuel supply, ZERA notices that the cost pressures are piling up and these require that prices be reviewed for two weeks to avoid fuel shortages and arbitrage,” reads the statement.
However, the finance minister Hon Mthuli Ncube said that they are going to be reviewing the fuel tax on 19 March on the sidelines of the Ingutsheni Central Hospital fundraising luncheon, which was graced by President Mnangagwa, yet to date 12 days later this move has yet to be effected while most Zimbabweans are still bearing the brunt of the cost.
Every day millions are being raked via this high tax, yet there is no urgency to save and salvage the situation, only lip service has been paid while the service stations are still charging extortionately high prices across the country.
One would have thought the same urgency to increase the fuel price would be applied to the relaxation of the taxes alas, this has not been so.Most traders and businesses have simply passed on the cost to the consumers, without any coverage and backup, the poor are now carrying the load of cost as bread , transport, butter, meat, and all basics have risen in their prices.
Comments