- Effective 5 February 2025, petrol prices rise to $1.53 per litre, diesel $1.58 per litre
- Fuel taxes and levies reach US$0.52 for diesel and US$0.54 for blended E15
- Ongoing Western sanctions on Russia affect global oil exports and prices
Harare-Zimbabwe Energy Regulatory Authority (ZERA) has increased fuel prices for the month of February, from January in US dollar terms effective 5 February 2025.
Petrol prices increased by 3% to $1.53 per litre from $1.48 while diesel prices went up by US$0.05 (5 cents) to $1.58 per litre from $1.53 per litre, highest prices since October 2024, indicating a 3.4% increase for both diesel and petrol.
This increase is attributed to fuel taxes and levies that have reached US$0.52 for diesel and US$0.54c for blended E15.
According to ZERA, the total landing cost is US$0.85 for diesel and US$0.84 for petrol.
These high taxes are pushing retail fuel prices to spike despite the landed cost of fuel being under $1 a litre.
The mandatory ethanol blend ratio for fuel has been reduced from 20% to 15% and can be lower as the production is usually disrupted by maintenance and supply constraints.
Ethanol is cheaper than pure fuel therefore reducing its proportion in the blend increases the overall cost fuel production.
The price hikes also comes amid geopolitical tensions , as Russia continues to face Western sanctions that impact its oil exports, leading to extended voluntary production cuts to stabilize global prices.
The country has significantly increased oil exports to Asian markets, particularly China and India, while forging new trade agreements with non-Western nations.
Historically, petrol prices in Zimbabwe have averaged US$1.45 per litre from 2017 to 2024, peaking at a record high of US$3.39 per litre in March 2019 and hitting a low of US$0.46 in February 2022.
Zimbabwe has one of the highest fuel prices in Africa and highest in SADC, with countries like Egypt pricing petrol at US$0.30c.
Equity Axis News
