Zimbabweans Fume Over High Fuel Prices
Last night the Zimbabwe Energy Regulatory Authority (ZERA) announced that fuel had gone up by more than 100 per cent. ZERA also announced that fuel which is sold in foreign currency has also gone up. This did not go down well with Zimbabweans who fumed over the high prices as well as the fact that ethanol is making up a massive portion of the prize despite the fact that it only makes 20 per cent of blended fuel.
Many Zimbabweans also argued that the maths done by ZERA was not adding up. As usual, Zimbabweans took to social media to fume and express their frustrations and incredulity over the new prices. Below are some of the reactions of Zimbabwe on social media,
Minister @fortunechasi your fellow citizens are asking about the price of blend, where the cost of ethanol is disproportionately high. Wouldn’t it be more cost-effective without the ethanol, they are asking. What’s the rationale for this in this time of economic trauma? pic.twitter.com/Q8fi6OuVod
— Alex T Magaisa (@Wamagaisa) June 23, 2020
Maybe @zeraenergy has a better explanation but that cost of Ethanol is simply unbelievable if not ridiculous?
Wasn’t one of the reasons for its introduction to make fuel cheaper? pic.twitter.com/yB8WxI8WuW
— C.E Mambo (@cemambo) June 23, 2020
The USD column for blend does not add up Sir @fortunechasi . Why is the price of ethanol approximately 3 times that of petrol FOB ? What rate are we using to blend? Does it make economic sense to blend @Mathuthu @elias_mambo here is another story https://t.co/3bXfgTtQjJ
— Duduzile Nyirongo (@dudumo) June 24, 2020
Ethanol is more expensive than petrol. Remind me why we blend again? Lets use all the ethanol as sanitizer and stop blending for now. Oksalayo there will still be queues. https://t.co/2wjQuAE6Zs
— Children First (@chirembawa) June 24, 2020
Is it possible to rock up to service station and buy petrol for US$0.18 and tell them to keep their ethanol, because this doesn’t make sense pic.twitter.com/IDdG94sT99
— Nqaba Matshazi (@nqabamatshazi) June 24, 2020
— Beauty Zhuwao (@BeautyZhuwao) June 24, 2020
But how does the unstable, valueless ZimBond affect the USD price? What happened to the Bond clown cannot surely affect the USD. We were buying petrol at USD$1.00 yesterday. Then the Bond takes its expected cliff dance and Zera schemes the USD price must dance to same music?? https://t.co/D2QkD9sqs5
— Tangai Chipangura (@TangaiChipangu1) June 24, 2020
Tibvunzireiwo @zeraenergy na @fortunechasi kuti how far increase in petrol price, uye why are we blending when the ethanol is the single biggest cost driver in the petrol price. Thanks. https://t.co/XlDkOpUXv7
— Tichaona Chitsinde (@TiChitsinde) June 24, 2020
Now ethanol cost is more than FOB and Duty added togetger. So why blending if landing price is cheaper? Who has the tender for supplying ethanol? Why do we have a monopoly in that area? @fortunechasi WHY ARE WE BLENDING? pic.twitter.com/lKSeTWD2ou
— Walter T Nyawungwa (@waltakaz) June 24, 2020
I directed this question to Minister @fortunechasi as he has political accountability for that area. However, I may as well put it to his boss @edmnangagwa Mr President, citizens are saying your regime is serving the interests of the Ethanol Cartel led by your ally Rautenbach. https://t.co/9rxKYRNfTo
— Alex T Magaisa (@Wamagaisa) June 24, 2020
So many things wrong here!
Have salaries also been adjusted to the new exchange rate?
2. What is the point of blending with a substance that’s more expensive (ethanol) than the core product?
In whose interests are we blending?
Why increase USD price?#ZanuPFMustGo pic.twitter.com/7e1p7RD7Wb
— Thandekile Moyo (@Mamoxn) June 23, 2020
Takubirwa nekubirirwa. How can Petrol that was btwn US$0.80 to US$1.05 jump to US$1.28 an increase of between 22% to 38% in US$? Apa iNzimbe futi, what’s the point of adding ethanol? Average regional USD fuel Price, SA-0.76, Bots-0.67, Moz-0.91, Zambia-0.98 Namibia-0.75. pic.twitter.com/KITrPmQ89f
— McGucci Madridista¹³ (@tabanimcgucci) June 23, 2020
On the Zera notice above:
FOB price per litre : $0.38
Tax per litre: $0.30
Total $ 0.68
Add 22% markup, pump price would be $0. 83
80% petrol (vol) + 20% eth (vol) = 1 litre
0.8*$0.68 + 0.2*$1.10 = $0.76
add mark up 0.22%
Pump price is $0.76 + $0.17 = $0.93
— Farai Mangoro (@mangorof) June 24, 2020
fob 0.3776+ duty 0,30=0,6776
+ ethanol 1.10 =1,776
+ oil company margin 0,101 = 1,877
+ dealer margin 0.122= 1,999
fob 0,4036+ duty 0,25= 0,6536
+ oil company margin 0,086 = 0,7396
+ dealer margin 0,104= 0,8436
Recommended is 1,09 a diff of $0,2464
— Beauty Zhuwao (@BeautyZhuwao) June 24, 2020
#Zimbabwe is leaderless. Fuel prices needed adjustment in RTGS$ terms to remove needless arbitrage opportunities BUT what’s the justification for increase in US$ from US$1.05 to US$1.28 when global fuel prices’re depressed due to slow economic activity? @MthuliNcube @fortunechasi pic.twitter.com/S8qHvCxYPX
— Ishmael Mazorodze (@IshmaelMaz) June 24, 2020
With the new fuel prices a Civil Servant will need exactly USD75 to fill up a 60 litre petrol tank based on this week’s average RBZ rate of 1 USD:57 RTGs Dollars.
That means the Covid-19 allowance promised to Civil Servants plus the 50 percent salary increase makes no sense. pic.twitter.com/kSNPayTCO1
— Cde Setfree Mafukidze (@cdesetfree) June 24, 2020
I don’t understand why the USD price had to be raised esp by such a huge margin. It can only mean that the USD fuel (tax) is being used to buy the RTGS fuel. We are going nowhere slowly. #Zimbabwe pic.twitter.com/ry2CUfn3ne
— Taz TG Mus (@tazmus982) June 24, 2020
Look at the USD column. The bulk of the cost is from Ethanol (locally produced) at $1.10. Making 86% of the total cost. For perspective,this amount can buy 1 litre of unleaded petrol in SA.
Who supplies Ethanol? And it to think it was introduced to make fuel cheaper
— David Chakombera (@david_chak) June 24, 2020
The ethanol deal is “Rauten” to the core & is meant to sweeten the lives of a chosen few!This question is too “big” even 4 “Chibabest”! Tindo,@BitiTendai once said its upwards 25% cheaper to import ethanol from Brazil! #StateCapture #CartelsMustFall https://t.co/Z2fQBdHur9
— KingJayZim (@KingJayZim) June 24, 2020
What’s the purpose of blending again? Ndiani arikudya ku ethanol nhai? Don’t we deserve Super petrol or unleaded? Nzimbe kudhura kupfuura the original product pic.twitter.com/Nl2pkNEldZ
— MaiMhukahuru (@jcAlegria5) June 24, 2020
Minister of Energy and Power Development Fortune Chasi is yet to comment on the matter. In the past, Chasi has shown that he is willing to address matters of public interest on social media if people speak on the issue. We hope that the Minister will also confront this matter head one.
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