Zimbabwe Hikes Gasoline, Diesel Prices for Second Time in Week

(Bloomberg) -- The latest price hike announced by energy regulators on Saturday is the second this week and comes 48 hours after Zimbabwe Finance Minister Mthuli Ncube increased the excise duty on fuel by 45%.

Gasoline now costs Z$9.01, up from Z$7.55, and diesel costs Z$9.06, up from Z$7.22, and reflects a 19% and 25% increase respectively from the Zimbabwe Energy Regulatory Authority. 

Ncube said fuel prices were too low in the southern African nation and needed to match the exchange rate between the local currency and the US dollar. On the official interbank market the rate is 9.28 per US dollar.

The hike in diesel, the most used fuel by companies and businesses which rely on it to operate generators, comes as power cuts lasting as much as 18-hours daily persist and is certain to put a further strain on business operations.

Econet Ltd, the largest mobile phone carrier in the country, said in a July 28th statement it needed 2 million liters of diesel monthly to run its 1,300 base stations, but fuel shortages meant it only had a quarter of its requirements met.

To contact the reporter on this story: Ray Ndlovu in Johannesburg at rndlovu1@bloomberg.net

To contact the editor responsible for this story: Lauren Berry at lberry4@bloomberg.net

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