By Paul Nyathi|Zimbabweans woke up to a surprise fuel price hike on Monday morning which was not announced by government.
Petrol prices have gone up from $1,33 to between $1,39 and $1,40 a litre while that of diesel has shot up from $1,23 to $1,26 per litre.
Government reduced duty on fuels in January which saw a slight reduction in the price of fuel.
Fuel price increases are normally followed by a sharp increase in the price of basic commodities. These prices do not normally come down when fuel prices arw reduced.
In the last few weeks, the priceof bread and beef went up by about 10% and 25% respectively with no explainable reasons given.
There was a significant rise in the price of world crude oil after United States President Donald Trump announced that his country was pulling out of the Iranian nuclear deal recently.
As of Friday, the price of brent crude oil per barrel was $77.
Speaking to weekend media the Confederation of Zimbabwe Industries president Sifelani Jabangwe said in tanden with the rise in international prices the price of fuel in Zimbabwe remained high and would affect producers though marginally.
“For those who have high usage of fuel in their businesses there could be some effects because we understand the prices have gone up due to the international price of oil,” he said.
“But the rise will be marginal because the prices have gone up by, say, just four cents.
“What we are saying is that the impact on price levels will be there but will be minimal.”
However, Confederation of Zimbabwe Retailers president Denford Mutashu said the rise in fuel prices would have a huge impact on consumers.
“Any movement upwards on cost drivers is not welcome in an economy where most people are living under the poverty datum line and are ravaged by a shortage of foreign currency, which does not seem to have an end in sight,” he said.
“Price increases on fuel are not welcome as it is a slap in the face to the ease and cost of doing business in the economy.
“Like I said earlier, it may push production costs for manufacturers and subsequently affect the final price for the consumer in an environment that has not been competitive.”
Consumer Council of Zimbabwe executive director Rose Siyachitema said while the rise in fuel prices would impact the prices of basic commodities, the effect would be minimal.
“It is very difficult to attribute it (the rise in the price of basic commodities) to fuel on the market because there are issues on the market place like the shortage of cash…there is a basket of things that would cause the prices of goods to go up,” she said.