Government has reduced duty on petrol and diesel by 50 percent, a move authorities say will not result in any reduction in fuel pump prices, which shot up by a similar percentage Tuesday.
Finance Ministry permanent secretary, George Guvamatanga, in a short video posted on the Ministry of Information’s Twitter page, announced the changes.
“Government has reduced duty on petrol and diesel. As you might be aware, the previous duties were RTGS$2.30 for petrol and $2.05 for diesel.
“These duties have now been reduced to $0.90 for diesel and $1.15 for petrol.
“This has been done in order to ensure that we cushion the public from the increase in the price of fuel,” Guvamatanga said.
The Zimbabwe Energy Regulatory Authority Tuesday increased the pump price for petrol to RTGS$4,97 per litre, up from $3,36 per litre while that of diesel is now $4,89, up from $3,22 per litre.
Information secretary Nick Mangwana said the move to reduce duty has helped keep the new prices at a reasonable minimum.
“The reduction on duty by government has already been factored into the prices you are seeing now. Had it not been for that, the prices were supposed to have gone up to around $7 (per litre).
“So the move by government means the increase will push the price of petrol to around $5,” he said.
According to the top government official, Guvamatanga was Tuesday night expected to appear on national television to explain the broader issues around the latest changes in the economy.