THE Zimbabwe Energy Regulatory Authority (Zera) yesterday announced a reduction in fuel prices due to the FOB (Free on Board) price movements and the revised duty regime.

Blend, which was at $10.01, is now $9.86 while diesel now costs $10.25 from $10.32. 

FOB refers to costs involved in shipping fuel.

In a statement, Zera said the decrease in the fuel prices was a result of Free On Board price movements and operators can sell at lower prices if it is to their advantage.

“The changes in the fuel prices are due to the FOB price movements and the revised duty regime (SI 161 of 2019) applicable from Monday 2 September 2019.

“Operators may, however, sell at prices below the cap depending on their trading advantages,” read the statement.

Zera acting chief executive, Mr Eddington Mazambani, assured the public of the stability of supplies on the market.

“Supplies are stable in the market with both products available,” he said.

Last month, the Ministry of Finance and Economic Development and Zera agreed that the duty set by Zera at the beginning of the week would become the absolute amount for the whole week until Sunday.

The previous pricing system made it difficult for traders to make fuel available when their prices were different from what Zera would have set.

From a survey, some service stations in Harare’s Central Business District were selling fuel to motorists using the new prices and there were no queues.

Government recently gazetted Statutory Instrument 161 of 2019 and the Customs and Excise (Tariff) (Amendment) notice 10, 2019, that gives legal effect to the new fuel and alcohol beverages excise duties announced in the 2019 mid-term budget review statement.

Finance and Economic Development Minister Professor Mthuli Ncube recently said Government had approved the direct fuel imports facility, in order to minimise disruptions to the production cycle due to the fuel supply gaps.