Government has ordered players in the petroleum industry to reduce fuel prices with immediate effect to $1,35 per litre for petrol, $1,23 per litre for diesel and $1,17 for paraffin following the reduction in excise duty announced this week.
The Ministry of Finance and Economic Development announced the excise duty reduction, which is expected to have a positive effect on the economy. Energy and Power Development Minister Simon Khaya Moyo told journalists in Harare yesterday that he expected maximum cooperation from players in the petroleum industry.
“After necessary consultations and in terms of Section 225 of the Customs and Excise Act: Chapter 23.02, the Minister of Finance and Economic Development (Patrick Chinamasa) has reduced excise duty on fuel with effect from 23 January 2018,” he said.
“The excise duty on petrol has been reduced from 0,5 cents to 0,385 cents per litre, while that on diesel and paraffin has been reduced from 0,4 (cents) to 0.33 (cents) per litre.
“In relation to the allowable maximum pump prices that should be observed by all traders, this means that the fuel prices announced this week by the Zimbabwe Energy Regulatory Authority of $1,40 per litre of petrol, $1,30 of diesel and $1,24 per litre of paraffin will now come down to $1,35 per litre for petrol, $1,23 per litre for diesel and $1,17 for paraffin with immediate effect.
“As Minister of Energy and Power Development, I expect and trust that this important decision by Government shall be implemented by all concerned parties. I, therefore, expect nothing less than immediate compliance.” Minister Khaya Moyo said energy was crucial to all economic and social activities and service providers across all sectors of the economy.
“This reduction of excise duty should, therefore, benefit and stimulate the economy at large,” he said.
“I wish to point out that the reduction of fuel prices will not mean these will remain fixed. Going forward, the fuel prices will either go up or go down in tandem with international oil prices movements as has always been the case. As you are aware, OPEC and Russia have been implementing crude production cuts. These have resulted in continual firming of prices since mid-last year. I am aware that the immediate reduction of excise duty has been taken by consumers to mean an immediate reduction in the pump prices of fuel as well.
“Obviously, some matters are bound to arise that will require rectification to smoothen the transition from the old prices to the new ones.” Minister Khaya Moyo said petroleum players affected by this development should approach his ministry for possible remedies.