The Zimbabwe Energy Regulatory Authority’s (Zera) stipulated retail fuel operator profit margin is $0,06.
As of yesterday, the prices of petrol and diesel were at an average of $1,33 and $1,18 per litre respectively, according to consultants Genesis Analytics hired by Zera to do an analysis of fuel pricing.
If the recommendation is taken on board, the price of fuel would rise to $1,35 and $1,20 per litre for petrol and diesel respectively a situation that would trigger a general increase in prices in the economy.
Addressing guests at the Petroleum Sector Pricing Study Stakeholder Workshop yesterday in Harare, Genesis Analytics representative in charge of the study Ethel Teljeur said part of the problem was a lag in the free on board cost to the final pump price.
“…the only model we found can work here is a fixed price setup to offshoot the lag in time it takes between FOB and the actual pump price,” Teljeur said.
The study found there was an average two week’s delay in considering changes to the free on board cost on the international market to the final pump price.