Fuel prices decrease in Zimbabwe

Locally manufactured, fuel grade ethanol from Chisumbanje, is causing Zimbabwean fuel prices to decrease.

This price drop sits somewhat out of sink with other countries in the region that have seen increased prices as a result of global market developments.

A litre of blended fuel ranges from $1.32 (€0.1) - $1.36 (1.03), and unleaded petrol has dropped from $1.44 (1.09) per litre to between $1.37 (1.03) - $1.40 (1.06).

'The current account deficit, at around 35% of GDP, is not sustainable and requires such initiatives as ethanol fuel that allows Zimbabwe to improve on national savings,' says economist Mr B. Muchemwa. 'With cars now increasing at a rate of 35 000 per annum, compared with just around only 2800 for the whole year in 2008, Zimbabwe will be spending more on fuel each year and a sustainable solution that conserves foreign currency is commendable.'

Of the domestic fuel source, ZNCC ex-president and secretary-general of the Comesa Business Council Mr T. Chikohora, says that, 'to a certain extent, [it] will reduce the cost of fuel and will make us less susceptible to fluctuations in international oil prices.'

Zimbabwe hosts Africa's largest ethanol plant with a daily capacity of 700,000 litres when fully commissioned.