The price of fuel in Zimbabwe went up by more than 500 percent on Wednesday as the government announced a deregulation of the petroleum oil industry.
Energy Minister Amos Midzi announced on state television the government was relaxing controls on the oil industry to allow private operators to import their own fuel.
The opening up of the oil sector to private players came with the introduction of a dual fuel pricing system under which government-procured fuel would be sold to government departments and public transport operators at the old government prices.
Other motorists would buy fuel at more than five times the government stipulated price.
Diesel that used to cost 200 Zimbabwean dollars (25 US cents) a litre will now be sold at 1 060 Zimbabwean dollars (US$1,32) while petrol price has gone up from 450 (56 US cents) to 1 170 Zimbabwean dollars (US$1,46).
Zimbabwe has grappled with an acute fuel shortage for three-and-a half years.
Lately fuel has been available on the black market at prices that were eight times more than the official pump price. – Sapa-AFP