Godknows Matarutse

ZIMBABWEANS should brace for a slight increase in prices for basic commodities after the Zimbabwe Energy Regulatory Authority (Zera) yesterday announced a slender adjustment to fuel prices.

The increase in fuel prices is being attributed to global price movements due to a huge demand for the commodity following the opening up of most economies after the Covid-19 pandemic has subsided.

Major fuel producers under the Organisation of the Petroleum Exporting Countries are reluctant to increase their daily production levels despite a global rise in demand for fuel thereby driving up the price.

According to the latest notice from Zera, petrol now costs US$1,30 up from US$1,26 while diesel is now at US$1,32 from US$1,27.

Prices in the local currency are now set at $110,41 from $106 for diesel while petrol is now pegged at $109,17 from $105.

The latest increase comes as prices of most basic commodities have gone up over the past months as a result of supply bottlenecks created by the Covid-19 travel restrictions that have caused delays at most entry ports.

Speaking to the Daily News yesterday, National Consumer Rights Association’s spokesperson Efi Ncube said the development has a negative impact.

“Any rise in a commodity like fuel will eventually lead to a hike in prices of basic commodities.

“We expect an increase in the price of basic goods and services as industry factors in the new cost of fuel.

“This rise will find its way into wheat, flour bread, cooking oil and other commodities. It is important at this point in time to ensure that customers are cushioned from this because they are the most affected at the end of the day,” Ncube said.

Retailers Association of Zimbabwe president Denford Mutashu said the price increase in fuel would likely drive up the cost of production.

“Continued fuel price hikes drive costs north and has negative ripple effects on the general cost of doing business. Unfortunately, most people choose to ignore the impact and only make ‘noise’ when blaming retailers for price increases,” Mutashu told the Daily News.

Zimbabwe National Chamber of Commerce chief executive, Chris Mugaga said: “I think as a country we need to avoid adjusting fuel prices using the exchange rate. But to be honest, I don’t think the increase warrants any shocking price hikes.”