Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
The Zimbabwe Energy Regulatory Authority (ZERA) has said fuel prices for January 2025 will remain largely unchanged for petrol while cost of diesel was slashed by US$0,01, offering a measure of stability for businesses and consumers alike.
Petrol will continue to retail at US$1,48 per litre, unchanged from December, while diesel prices have seen a marginal decline from US$1,54 to US$1,53 per litre.
In a communique, ZERA emphasised its commitment to ensuring fair pricing in line with international trends.
Analysts say ZERA’s decision is likely to stabilise costs for businesses.
“Our pricing mechanism reflects movements in global oil prices while considering local economic conditions,” the regulator said.
This decision comes against the backdrop of relatively stable Brent Crude prices, which averaged US$80 per barrel in November and US$82 per barrel in December.
Economist, Gladys Shumbambiri-Mutsopotsi, highlighted the positive implications of steady fuel prices on inflation.
“Fuel is a critical input in virtually all sectors of the economy. When prices remain stable, it creates a ripple effect, helping to anchor inflation expectations and preserve purchasing power. This is particularly important as Zimbabwe continues to grapple with consistent inflation pressures,” she said.
Sean Kuipa, an industrialist, echoed similar sentiments, emphasising the importance of fuel stability for production planning.
“Industries rely heavily on fuel for transportation and machinery. Consistent pricing allows manufacturers to plan production schedules and budgets with greater accuracy, reducing the risk of cost overruns. It also bolsters investor confidence in the operating environment,” Mr Kuipa explained.
From a distribution perspective, wholesaler Promise Tauya, praised the marginal reduction in diesel prices, noting its significance for logistics.
“Diesel powers the majority of freight and distribution vehicles. Even a small decrease in diesel prices can lead to meaningful savings across the supply chain, ultimately benefiting consumers through stable or lower product prices,” Mr Tauya said.
While the unchanged petrol price and slight diesel reduction offer immediate relief, analysts warn that global oil price fluctuations could still pose challenges in the months ahead.
Brent crude prices remain vulnerable to geopolitical tensions and supply-demand imbalances, factors that could eventually filter into local fuel costs.
For now, however, businesses and consumers can breathe a sigh of relief as the steady fuel prices provide a foundation for planning and economic stability.
As the year begins, all eyes will remain on ZERA and global oil markets to gauge the trajectory of fuel prices and their broader economic impact.
This stability, coupled with prudent management of other economic levers, could be a key ingredient in sustaining Zimbabwe’s economic recovery in 2025.
