SADC region experiences spike in fuel prices

 SADC region experiences spike in fuel prices

SADC region experiences spike in fuel prices.

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The general rise in inflation has been followed by an increases in the prices of diesel and petrol by 47 percent although the exchange rate remain suppressed over the past seven months.

The new fuel prices as from April 5th 2021 according to the Zimbabwe Energy Regulatory Authority (ZERA) are Diesel 50 (ZWL/Litre) – $111.77; Blend (ZWL/Litre) -$112.96; Diesel (USD/Litre) -$1.32; Blend (USD/Litre) -$1.34

The increase of fuel prices has been trending since the beginning of June 2020 last year and till today prices for fuel are still on a constant rise as compared to other countries in the Sadc region.

When the government removed a fixed exchange rate in March 2020 the ZERA stated that fuel prices in ZWL will rise by 152%.

During that period the fuel price for diesel rose from ZWL$20.84 per litre to the new price of ZWL$24.93 per litre, hence an increase in price of diesel by   ZWL4.09. Blended Petrol had gone up to ZWL$28.96 from ZWL$21.00 per litre hence an increase of Blended Petrol in price by ZWL$7.96.

To date fuel price has risen 5 times since last year 2020 March when the government implemented the auction exchange rate to stabilize fuel prices in the country.

The weekly foreign currency auctions were conducted with the aim to allocate scarce U.S.D in the economy and the country as a whole hence ending a fixed exchange rate of ZWL$25.00 to 1 U.S.D which was in place since the 30th of March 2020.

Comparing to Zambia fuel prices in the same period, the Zambian Energy Regulatory Board (ERB) gave an announcement that prices of fuel products remain unchanged as from 21 Dec 2020 to 29 March 2021 has remained as $17.62 Zambian Kwacha

The Zambian ERB stated that the introduction of Statutory Instrument number 125 of 2020 on Value Added Tax (zero-rating amendment ordered by the government will not affect the current fuel prices across Zambian.

On the other hand  Botswana Energy Regulatory Authority (BERA) confirmed that fuel prices of unleaded petrol 93 were increased by 58 thebe and unleaded petrol 95 were increased by 57 thebe per litre. Retail prices for diesel were increased by 52 thebe per litre, all fuel prices were made effective as from March 1st 2021.

BERA stated that the increased retail prices are considered relevant to the general increase of international oil prices which increased due to the rollout of covid 19 vaccines. The previous fuel price adjustments were made in September 2020.

Botswana Gasoline prices, litre, 29 March 2021:

Botswana

Gasoline prices

Litre Gallon
BWP 8.080 30.586
USD 0.728 2.756
EUR 0.169 2.343

Meanwhile South African Department of Energy stated the latest fuel price adjustments as of April 7th 2021 with changes that include: Petrol 95 increased by R1.00 per litre; Petrol 93 increased by 95cents per litre; Diesel 0.05% increased by 65cents per litre; Diesel 0.005% increased by 63cents per litre; Illuminating Paraffin increased by 35cents per litre.

The cost of LPGas will also cost more as increased by 48cents per kilogram. South Africa’s fuel prices are said to be adjusted on a monthly basis and there are several factors that cause these changes. This month’s fuel price was probably caused by low US crude oil inventory figures and the Suez Canal blockage that caused a delay for all cargo containers including oil tankers etc.

The minister of finance Tito Mboweni in his 2021 budget speech stated that fuel levies will increase by 27cents a litre, compromising 15cents a litre for the general fuel levy 11 cents towards the Road Accident Fund levy, made effective as from April 2021.

 Fuel prices from March to April

Fuel (Inland) March fuel prices April fuel prices
95 Petrol R16.32 R17.32
93 Petrol R16.15 R17.10
0.05% Diesel

(wholesale)

R14.12 R14.77
0.005% Diesel

(wholesale)

R14.17 R14.80
Illuminating Paraffin R8.46 R8.81

The rise of fuel prices has been attributed to the general rise in fuel prices on the international market in January 2021.

 

Chen Williams

A young Energetic communication expert with an unrivaled ability to understand how to pitch stories objectively for financial publications and the Arts. Passionate about business, the youth in agriculture, video editing, photography, and music production.

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