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Are Fuel Prices Stagnant in Zimbabwe as Crude Oil Dips to $30 A Barrel?

U.S. oil prices crashed below $27 a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets.

Although oil prices have gone down by more than 60 percent since last year, Zimbabwean motorists have hardly felt the reliefs as fuel prices have remained stagnant.

A barrel of crude oil is trading at around $30, its lowest since the 1990s. In Zimbabwe, pump prices of petrol have remained at around $2 liter.

However, motorists say there are signs that prices are beginning to dip in the country because of resurgence in the oil black market.

Abednico Bhebhe, president of the Motor Industry Employers Association, told VOA Studio 7 that oil prices started dropping in tandem with world markets at the beginning of the year.

“We are always behind in terms of reducing prices when prices of commodities go down in international markets … The reason being that in Zimbabwe it’s because of the economic pressures. Some fuel service stations have reduced prices of fuel because of the resurgence of the black market.

“Botswana and South Africa at least respond to world market trends but we hardly respond to those trends.”

Bhebhe further said the prices have also been influenced by some big companies’ move to reduce the cost of fuel as per international market prices.

He said some fuel service stations are now selling diesel at $1,07 per liter, a significant price drop compared to last year.

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