The government has decided to stick to deadline to phase out diesel 500
Energy and Power Development Minister Simon Khaya Moyo has announced that Zimbabwe will stick to the deadline to phase out the high sulphur diesel 500 by the end of the month and cut the price of the cleaner diesel 50 by about nine percent.
Zimbabwe moved from Diesel 5000 to Diesel 500 in 2007.
Harare, along with Mozambique, Malawi, and Zambia use the Beira port for fuel receipts, and agreed a June 2017 target to switch from Diesel 500 to Diesel 50. They however, agreed to give fuel dealers a grace period to clear old stocks.
The countries are bent on moving to an even lower sulphur fuel Diesel 10 and have set the target for 2020.
Minister Moyo said, "The country is phasing out Diesel 500 in February and Diesel 50 will be brought in and transported through (Beira) pipelines." He added that his ministry will amend the Petroleum Act to criminalize the importation of Diesel 500, which he said will have to be phased out by May this year.
The Government, last month reduced excise duty on fuel. This move saw duty on fuel being reduced from $0.45 per liter to $0.385 per liter while duty on diesel and paraffin was modified downwards by $0.07 to $0.33 per liter.
Fuel dealers, as a result were instructed to effect a 3.6 percent reduction in the retail price of fuel to $1.35 per liter, 5.4 percent cut on the retail price of diesel to $1.23 per liter and a 5.6 percent cut on paraffin price to $1.17 per liter.
As per the Consumer Council of Zimbabwe, the price of basic commodities dropped by 4.83 percent last month, as a result of the cut on fuel price.
Fuel was selling at an average price of $1.40 per liter while the prices of diesel and paraffin were about $1.30 and $1.24 per liter respectively, before the reduction of duties.
When compared to other countries in the region due to several taxes and levies, Zimbabwe fuel cost build up remains very high, despite the reduction in excise duty on fuel.
Government taxes and levies add 58.2 cents and 44.2 cents to the fuel and diesel pump price respectively, as seen by the country's fuel cost build up. Source: Bulawayo PWKD15022018
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