The Zimbabwe Energy Regulatory Authority has reviewed the price of diesel downwards as operators are encouraged to charge prices lower than the capped prices depending on their trading advantages.
In a statement, ZERA’s announced that there had been an increase of on the price of fuel on the international market and local capped prices for diesel and petrol were expected to both increase to over US$ 1.35 per litre in the month of June 2021.
“However, ZERA is pleased to announce a decrease in the price cap for diesel from US$1.32 to US$1.30, while the petrol price cap will remain at US$1.33,” said the authority.
ZERA said the demand for oil had increased following economic recoveries after most countries, including Zimbabwe, have rolled out Covid-19 vaccination programmes and implemented stimulus measures.
“However, there are still uncertainties associated with the Covid-19 pandemic that OPEC and other producing countries, led by Saudi Arabia and Russia, are only gradually producing more barrels of oil into a strengthening oil market, leaving the market in a persistent deficit.