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Zimbabwe’s president hikes fuel prices to tackle shortages
HARARE, Jan 13, 2019 (BSS/AFP) – Zimbabwe’s President Emmerson Mnangagwa
has announced an sharp increase in fuel prices in a measure to improve
supplies as the country struggles with its worst petrol shortages in a
decade.
After years in international isolation, Zimbabwe’s economy has been on a
downturn for more than a decade with cash shortages, high unemployment and
recently a scarcity of basic staples like bread and cooking oil.
In an address on state television late Saturday, Mnangagwa said prices of
petrol and diesel would more than double to tackle a shortfall caused by
increased fuel usage and illegal trading.
Mnangagwa, who took over from long-time leader Robert Mugabe and won a
disputed election in July, also announced a package of measures to help state
workers after strikes by doctors and teachers over pay.
He said from midnight petrol prices would rise to $3.31 (2.89 euros) from
$1.24 a litre and diesel prices to $3.11 from $1.36 a litre.
“Following the persistent shortfall in the fuel market attributable to
increased fuel usage in the economy, and compounded by rampant illegal
currency and fuel trading activities, government has today decided on the
following corrective measures,” he said announcing the changes.
The finance minister this week said the prices were lower than other
countries in the region and some foreigners were taking advantage buying fuel
in bulk in Zimbabwe for resale in neighbouring countries.
The announcement came after fuel shortages which began in October last
year worsened in recent weeks with motorists sometimes spending nights in
queues at fuel pumps stretching for kilometres.
Mnangagwa said foreign diplomats and tourists would get fuel at cheaper
prices at certain designated points. The government also introduced measures
to curb a parallel market where fuel was being sold at five times the
official price.
Doctors in state hospital went on a 40-day strike beginning early December
demanding salaries in US dollars and improved work conditions.
Teachers unions also called a strike this week for better pay, though
their calls went largely unheeded.
Mnangagwa also warned against “certain elements bent on taking advantage
of the current fuel shortages to cause and sponsor unrest and instability” in
the country.
As part of financial reforms, Zimbabwe also plans to re-introduce a local
currency “in less than 12 months”, after using the US dollar and regional
currencies since its hyperinflation crisis a decade ago.
BSS/AFP/RY/1645 hrs