Petrol is now cheaper than diesel in Zimbabwe due to the government’s blending policy, the Zimbabwe Energy Regulatory Authority (ZERA) has explained.
Diesel is usually cheaper than petrol, and after the latest fuel prices adjustments, motorists were surprised to see the opposite.
Explaining this rare price differential, ZERA Acting Chief Executive, Mr Eddington Mazambani said government’s policy of blending petrol with ethanol on a 90 to 10 ratio means the pump price is reduced.
“The price of petrol has now become lower than that of diesel because we are blending petrol with ethanol and this reduces the forex component on blended prices and that consequently reduces the price of petrol,” he said.
Ethanol is locally produced and using the latest consumption figures of 1.5 million litres of petrol per day, government is potentially saving foreign currency to import not less than 150 000 litres per day.
The Transitional Stabilisation Programme (TSP) prioritises the use of locally produced goods in order to save the country foreign currency and create a strong framework for long term economic growth.