Wednesday, June 29, 2005


While rest of the world jubiliates over easing oil prices, Zimbabweans woke up this morning to be shocked and awed by, you guessed it, an outrageous increase in the cost of fuel, which one can hardly find in Zimbabwe these days.

Says the Herald (Read: Horrid):
"THE price of fuel has been increased by about 300 percent with effect from last night.

Petrol now costs $10 000 per litre, up from $3 600 while diesel is now priced at $9 600, up from $3 800. A litre of paraffin now sells for $6 500 while Jet A1 now costs $9 500 per litre.

Petroleum Marketers of Zimbabwe (Private) Limited chief executive Mr Muziwoxolo Bukhwele, who announced the new prices, said the increases had been necessitated by the rise in oil prices on the international market.

Oil prices have shot up from US$27 a barrel in January to more than US$60 a barrel at the weekend"
Let me get this straight, world oil prices are high, we increase ours to match what others are charging, then this should help us procure more oil (Read: enough for the barebones necessities) right? Wrong. From the same article,

"Mr Bukhwele, however, said the increases would not result in a drastic change in the fuel supply situation since there were still several constraints to contend with, such as the shortage of foreign currency in the country."

So there are other problems to be dealt with? Well surprise me! By the way, what has the government been doing to ammend these other "constraints"? That's right, turning people out of their homes and eradicating the informal market.

This is economics ZANU-PF style and it's...!

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