Government has reduced the price of Diesel 50 from US$1,30 to US$1,22 per litre with effect from tomorrow as part of efforts to peg a realistic price of the eco-friendly fuel.
The new price comes at a time Government banned the importation of Diesel 500 by 1 May 2018, citing its damage to vehicle engines due to high Sulphur content.
In a notice published last Friday, the Zimbabwe Energy Regulatory Authority (Zera) said the transition from D500 to D50 was progressing well since the importation of D500 was banned through General Notice 669 of 2017.
“The retail price for the week starting March 5, 2018 should not exceed US$1, 22 for all diesel,” said Zera.
“The reduction of D50 prices in the market is a result of use of cheaper pipeline transportation of D50 into the country as opposed to road and rail. “The convergence in prices of D50 and D500 that is being witnessed shows compliance with the Government directive to ban retail of D500 by 1 May
“However, subsequent prices will change in line with movements in international crude oil prices and the application of the fuel pricing regulations by Zera.”
Compliance testing by Zera shows that the majority of fuel retail sites in the country are now selling D50 only, with a few dispensing remaining stocks of D500.
During the transition from D500 to D50, motorists whose vehicles use D50 only are urged to verify with retail sites that they are buying fuel compatible with their vehicles.
Zera said it would continue to conduct compliance audits to ensure that high fuel quality is maintained at the correct prices and necessary steps are followed where violations occur.
Most countries are moving towards use of diesel with low sulpur content with the majority of those in Europe now at D10.
The fuel has much better combustion quality than regular diesel, resulting in improved fuel consumption and engine performance. Sunday Mail