- Diesel prices have risen slightly from US$1.53 per litre to US$1.54
- Petrol prices remain unchanged at US$1.48, consistent with the previous month’s rates
- Despite a slight increase in Brent crude oil prices, petrol prices have stayed stable
Harare-The Zimbabwe Energy Regulatory Authority (ZERA) has announced an increase in fuel prices for January 2025.
Diesel prices have risen slightly from US$1.53 per litre to US$1.54, while petrol prices have remained unchanged at US$1.48, consistent with the previous month’s rates.
Despite a slight increase in Brent crude oil prices, petrol prices have stayed stable.
This suggests that other factors, such as refinery costs, supply levels, or market competition, may be influencing petrol pricing.
In contrast, the small rise in diesel prices reflects a direct response to the increased crude oil prices, indicating that the market is reacting to the overall rise in oil costs.
Last week, crude prices rose over 3%, driven by expectations of more stimulus measures from China, increased demand due to cold weather in Europe and the US, and declining US stockpiles.
United States, Saudi Arabia, Russia, China, and Canada remains the top four oil producing countries in the world.
In addition to the individual country producers, the Organization of Oil Producing Countries, or OPEC, remains a powerful cartel of oil producers worldwide that can influence the global market price.
OPEC produces about 40% of the world's crude oil with its member countries also exporting around 60% of the world's petroleum.
In April 2023, OPEC surprised markets by announcing output cuts totalling around 3.66 million b/d, or 3.7% of global demand.3 This sent the price of oil up, skyrocketing 7%.
OPEC was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).
Ecuador suspended its membership in December 1992, rejoined OPEC in October 2007, but decided to withdraw its membership of OPEC effective 1 January 2020. Indonesia suspended its membership in January 2009, reactivated it again in January 2016, but decided to suspend its membership once more at the 171st Meeting of the OPEC Conference on 30 November 2016.
Gabon terminated its membership in January 1995. However, it rejoined the Organization in July 2016. Qatar terminated its membership on 1 January 2019. Angola withdrew its membership effective 1 January 2024.
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