Zimbabwe further increases fuel prices

17/06/2019,

On 21 May, the Government of Zimbabwe announced a new increase in fuel prices, which follows the hike implemented at the start of the year (FPMA Food Policies). Prices were raised by nearly 50 percent mainly because of the strong and persistent deprecation of the country’s currency, with petrol and diesel now costing around RTGS dollar 4.97 per litre and RTGS dollar 4.89 per litre, respectively. The recent increase in fuel prices is likely to cause an increase in transport costs and to add further upward pressure to food prices, which in April were up to three times higher year on year, underpinned by the poor macroeconomic conditions in the country, including the sharp drop in the local currency’s value, and more recently by the poor prospects for the 2019 cereal crop.

Country: Zimbabwe