The Zimbabwe Energy Regulatory Authority (ZERA) has announced that fuel prices for January 2025 will largely remain stable, with the cost of petrol staying the same, while diesel prices are reduced slightly by US$0.01.
This move is seen as a positive step for both businesses and consumers, offering some level of price consistency.
Petrol will continue to be sold at US$1.48 per litre, the same price as in December, while diesel will now cost US$1.53 per litre, down from US$1.54.
In a statement, ZERA reaffirmed its commitment to maintaining fair pricing that aligns with global trends.
Experts suggest that this decision will help businesses manage costs more effectively.
“Our pricing structure reflects global oil price fluctuations while taking local economic conditions into account,” ZERA explained.
This announcement follows a period of relative stability in the global oil market, with Brent Crude prices averaging US$80 per barrel in November and US$82 per barrel in December.
Economist Gladys Shumbambiri-Mutsopotsi highlighted the importance of stable fuel prices in controlling inflation.
“Fuel is a key cost in almost every sector. Stability in fuel prices can help manage inflation expectations and protect consumers’ purchasing power, which is crucial as Zimbabwe continues to face inflationary pressures,” she said.
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Industrialist Sean Kuipa also emphasized the significance of stable fuel pricing for production planning.
“Industries depend on fuel for transportation and machinery. When fuel prices are consistent, manufacturers can better plan their operations and manage budgets, which reduces the risk of unexpected costs. This also boosts investor confidence in the market,” Kuipa noted.
Wholesaler Promise Tauya commented on the small reduction in diesel prices, pointing out that it could offer significant savings for logistics.
“Diesel fuels most freight and distribution vehicles. Even a modest decrease in its price can have a considerable impact on savings across the supply chain, which could ultimately lead to lower prices for consumers,” Tauya said.
While the stable petrol price and slight reduction in diesel costs provide immediate relief, experts warn that fluctuations in global oil prices may still present challenges in the future.
Brent crude prices are subject to geopolitical factors and changes in supply and demand, which could eventually impact local fuel prices.
For now, however, businesses and consumers can benefit from the current stability, which supports economic planning and stability.
Looking ahead, attention will remain on both ZERA’s decisions and global oil market trends to understand how fuel prices will evolve and their potential impact on the broader economy.
This stability, combined with careful management of other economic factors, could play a crucial role in supporting Zimbabwe’s economic recovery throughout 2025.
