Share

Fuel in Zimbabwe will now cost over R20 a litre

Zimbabwe has announced a massive fuel price hike after the country's central bank said it would no longer provide fuel dealers with funding for petrol and diesel.  

Fuel prices increased by 46% for petrol and 49% for diesel on Tuesday, according to the Zimbabwe Energy Regulatory Authority. 

The price of petrol has increased to RTGS$4.97, up from RTGS$3.36. A litre of diesel will cost RTGS$4.89, up from RTGS$3.22.

RTGS$ stands for real-time gross settlement dollar, a new currency that Zimbabwe introduced in February. It does not trade outside of the county. 

According to Reserve bank of Zimbabwe one real-time gross settlement dollar buys 4.11 rand. 

In South African terms, a litre of petrol will now cost R20.42 and a litre of diesel R20.09, according to the official RTGS$/rand exchange rate as of Tuesday at noon. 

The price hikes come after the government announced that fuel dealers will now have to buy fuel at the official floating exchange rate. Previously, they could buy fuel at a discounted rate to the US dollar. 

" [...] the 1:1 foreign exchange rate that was being used by Oil Marketing Companies for the procurement of fuel will be discountinued with immediate effect," said the central bank in a statement on Monday. 

This price hikes are likely to cause an increase in transport fares and the price of goods. In order to try and dampen the effect and ease the impact of high inflation, Zimbabwe earlier announced that it would subsidise public transport and cut fuel duties.

The latest April inflation figures showed year on year inflation at 75.8%.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.1%
Rand - Pound
24.04
+0.3%
Rand - Euro
20.55
+0.2%
Rand - Aus dollar
12.34
+0.6%
Rand - Yen
0.13
+0.8%
Platinum
900.98
-0.2%
Palladium
1,000.76
-0.5%
Gold
2,155.89
-0.2%
Silver
24.95
-0.4%
Brent Crude
86.89
+1.8%
Top 40
65,751
-0.8%
All Share
71,995
-0.6%
Resource 10
53,013
-0.6%
Industrial 25
99,381
-1.1%
Financial 15
16,605
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders