HARARE
–
Zimbabwe’s
cabinet
on
Tuesday
approved
a
review
of
selected
fuel
taxes
as
authorities
scramble
to
contain
rising
costs
triggered
by
global
oil
market
disruptions
linked
to
the
Iran
war.
Ministers
said
they
were
responding
to
mounting
pressure
on
fuel
and
transport
costs
while
trying
to
keep
broader
inflation
in
check,
following
recent
price
increases
to
US$2.17
per
litre
for
petrol,
up
from
$1.52
in
February,
and
US$2.05
for
diesel,
up
from
$1.56.
Finance
minister
Mthuli
Ncube
told
a
post-cabinet
media
briefing
that
part
of
the
strategy
to
lower
fuel
prices
includes
revising
ethanol
blending
ratios.
“We
also
considered
the
option
of
increasing
the
ethanol
blending
of
petrol
from
the
current
E5
to
E20
level
with
a
view
to
reducing
the
pump
price
of
petrol
in
the
local
market,”
Ncube
said.
“Appropriate
refinements
of
the
options
are
underway,
and
the
necessary
fuel
price
adjustments
will
be
communicated
in
due
course.”
Information
minister
Zhemu
Soda
said
cabinet
had
approved
“the
review
of
selected
and
time-bound
fuel
taxes
in
order
to
contain
inflationary
pressures
and
safeguard
consumer
welfare.”
Of
the
$2.17
motorists
currently
pay
for
a
litre
of
petrol,
nearly
86
cents
goes
to
various
government
taxes.
While
the
government
says
Zimbabwe
has
about
three
months’
worth
of
fuel
reserves
bought
at
earlier
prices,
the
Zimbabwe
Energy
Regulatory
Authority
(ZERA)
sets
pump
prices
based
on
current
import
costs
to
ensure
suppliers
remain
viable.
Authorities
insist
most
basic
commodity
prices
have
remained
stable,
but
pressure
is
beginning
to
show
in
key
sectors.
“Most
businesses
have
not
increased
the
prices
of
basic
goods
such
as
mealie-meal,
laundry
soap,
cooking
oil,
sugar,
flour,
rice,
bath
soap,
washing
powder,
powdered
or
fresh
milk,
eggs,
beef,
chicken
and
salt,”
industry
minister
Mangaliso
Ndlovu
said.
However,
cabinet
acknowledged
emerging
increases.
“A
few
bread
makers
increased
prices
by
an
average
of
10
percent,”
Ndlovu
noted.
“Price
hikes
have
also
been
witnessed
in
the
transport
sector,
in
particular
by
passenger
vehicle
operators.”