By Business Reporter-The Zimbabwe Energy Regulatory Authority (ZERA) has increased the price of Liquid Petroleum Gas (LPG) from US$1.56 to US$1.85 per kilogramme.
ZERA said the new LPG prices were calculated in line with the Petroleum (Liquid Petroleum Gas Pricing) Regulations 90 of 2021. Operators are still allowed to sell below the prescribed prices depending on their “trading advantages.”
The announcement came shortly after ZERA increased petrol (Blend E5) to US$2.23 per litre, up from US$2.17, and diesel (50) to US$2.11 per litre, up from US$2.05. The price hike follows two waves of price increases on 4 March and 18 March.
On Thursday, 02 April, Finance Minister Mthuli Ncube temporarily removed all taxes and levies on diesel to cushion the economy.
ZERA later said that without this intervention, diesel prices were projected to reach US$2.65 per litre.
The suspended taxes, totalling US$0.54 per litre, include Excise Duty, ZINARA Road Levy, Carbon Tax, and the Strategic Reserve Levy. Petrol taxes, however, remain unchanged.
ZERA offered some relief for motorists, saying petrol prices could fall in the next review. The drop is expected once ethanol production ramps up, and the blending mandate increases to E20, potentially reducing the cost by around 18 cents per litre.
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