Harare - The Zimbabwean government on Friday put a ceiling on the retail price of fuel following the drop in international fuel prices.

According to a join press statement issued by the country’s ministry of finance and the ministry of energy, the maximum retail prices of fuel has been adjusted to US$1.44 per litre for blended petrol and $1.32/litre for diesel.

The government said the maximum prices, which came into effect immediately, provide a guide as maximum prices and fuel retailers are expected to charge prices lower than those that were stipulated.

“Government has evoked Statutory Instrument No 4 of 2015 to share the benefit arising from the decline in fuel prices, between national programmes and the market, as has been done in other countries,” said the statement.

The Zimbabwean government last week adjusted excise duty on petrol from $0.35 to $0.45/litre, while that for diesel was adjusted from $0.30 to $0.40/litre.

The move by the Zimbabwean government follows the plunge in global oil prices.

Global oil prices have fallen sharply over the past seven months. Since June 2014 prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009, and US crude has also fallen below $50 a barrel.
 
In reaction  to the falling international oil neighbouring countries - including South Africa and Zambia - have reduced fuel pump prices, a move that has benefited motorists and given households extra pennies to consume or save.

In Zambia the Energy Regulation Board (ERB) reduced the pump price of petroleum products by 23.13% for petrol, 28.22% for diesel and 30.76% for kerosene, effective from midnight January 16.

In South Africa the department of energy recently announced the reduction prices of petrol, diesel, illuminating paraffin and LPG with effect from January 7.

READ: Record 127c drop in petrol price

Petrol was reduced by 127 cents/litre, diesel by 105c/litre, illuminating paraffin by 144c/litre and LPG by 210 cents per kilogram.

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