/ 2 November 1998

Zim petrol price rises 67%

DUDUZILE NKOMO, Harare | Monday 11.00am.

THE Zimbabwean fuel price has been increased by 67% with effect from Friday night, President Robert Mugabe’s government announced at the weekend.

Leaded petrol now costs about US$0,28, from 17c per litre, while the price of diesel now costs 23c, an increase of nearly 68%. Additional increases are expected at the beginning of next year, when the national oil company implements quarterly adjustments to the new selling prices.

The fall of the Zim dollar against major currencies is cited for the increases. Low income groups are the hardest hit, because the price of paraffin has gone up by 346% to about 24c a litre, from 5c. Paraffin is the source of energy for most rural businesses and communities in Zimbabwe.

Meanwhile, commuter bus companies have passed on the increase to commuters by increasing their own fares.