The Zimbabwe Energy Regulatory Authority (ZERA) has increased fuel prices for July, a move tied to rising global oil prices and ongoing challenges in Zimbabwe’s energy supply chain.
According to the new price schedule, petrol now costs US$1.56 per litre, up from US$1.54 in June, while diesel has jumped to US$1.55, a more noticeable increase from US$1.50.
Though the changes may seem small, they reflect a broader trend of fuel price instability, both globally and at home.
Global Conflicts and OPEC+ Cuts Push Oil Prices Higher
Fuel prices have been climbing worldwide, largely due to renewed geopolitical tensions and tight supply controls by major oil producers. The situation escalated in mid-June after the U.S. launched airstrikes on Iran’s nuclear facilities, following earlier Israeli attacks.
This conflict sent oil prices soaring. On June 23, Brent crude hit US$81.40 per barrel, its highest level in five months, before easing slightly to US$78.39. West Texas Intermediate also saw a jump, climbing 2.6% to US$75.76.
On top of that, OPEC+ supply cuts, led by Saudi Arabia and Russia, have kept global stockpiles tight. Meanwhile, summer fuel demand in Europe is back to pre-COVID levels, and shipping disruptions in areas like the Red Sea are adding further pressure to prices.
Zimbabwe’s Fuel Market Still Highly Vulnerable
For countries like Zimbabwe, which import all refined petroleum products and lack strong financial buffers, global oil shocks hit harder. The economy’s heavy reliance on US dollar transactions for fuel purchases also leaves it more exposed to international price shifts.
ZERA adjusts fuel prices monthly using a formula that includes global Free-On-Board (FOB) costs, transport and insurance, and exchange rate benchmarks. While the process offers price transparency, it also means Zimbabwean consumers face regular changes at the pump.
Diesel Sees Sharper Hike Due to Global and Regional Pressures
The five-cent rise in diesel suggests growing global demand for diesel fuel, especially from the industrial and logistics sectors, along with rising inland distribution costs in the region.
With Zimbabwe’s supply routes often affected by logistical challenges in neighboring countries, the diesel price hike likely reflects more than just international trends—it’s also a sign of regional strain on transport systems.
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The post Zimbabwe Energy Regulatory Authority (ZERA) Hikes Fuel Prices for July appeared first on iHarare News.
