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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 m,oster hon mthulin Ncube sais trhat they are going to be reviewing the fuel tax on xxxx , yet to date xxxxx later this moive has is yet tobe rwctified while most Zimbabwean are still vearing the brunt of tyhe cost
every daiy millions are bein raked via this high tax, tghere is no urgenvcy to save and salvage the situiation, only lip service has been paid whule the service stations are still charging extortinationaly high prices across the country .
One would have thought the same urgency to uncrease the fuel price would be applied to the relaxation of the taxes alas, this has not been so.
MMost traders and businessses have simply passed on the cost to the consumers, with out any covergae and backup, the poor are now carrying th load of cost as bread , transport, butter mert and all bsics have risn their prices
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