ECONOMIST Doctor Prosper Chitambara says the recent adjustments in fuel prices will trigger another wave of price increases across the economy amid calls for adjustments which places the stability goal at the heart of policy implementation.
This follows a significant increase in the prices of fuel announced by the Zimbabwe Energy Regulatory Authority (ZERA) on Thursday.
"Please be advised of the fuel prices for diesel and blend effective 7 September 2023. The prices are as follows Diesel 50 US$1.76 or ZW$8 160 per litre, Petrol US$1,65 or ZW$8 160. The prices are for September 2023 based on M-1 and they will be effective up to 4 October," said ZERA.
Prior to the latest increases, a litre of Petrol was being sold at around US$1,55 with Diesel hovering almost around the same range.
The energy regulator said the public and operators may sell petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided for by the fuel pricing regulations.
Speaking to NewZimbabwe.com shortly after the announcement, Chitambara said that given the circumstances, price hikes will be inevitable.
"Normally fuel prices in the country are determined by trends in the global arena leaving Zimbabwe with no choice except to follow suit as a petroleum net importer. However, what we are seeing is just a big jump which will adversely affect the entire economy as it pushes upwards the cost of doing business.
"Naturally companies will simply pass down the burden to the consumers who will experience a surge in the cost of living," he said.
The widely respected economist urged authorities to reconsider fuel price hikes arguing that Zimbabwe is among the top five countries with very high fuel prices on the continent.
"In fact, Zimbabwe is among the top African countries with high fuel prices. You would also realize that almost 40% of our total fuel price component is made up of taxes which may be trimmed down in order to ease inflationary pressures in the economy," he added.
