LOCAL diesel consumption edged up by a marginal 0,16 percent to 704,32 million litres in the first eight months of 2024, compared to 703,15 million litres in the same period last year, despite significant national and international events, latest data from the Zimbabwe Energy Regulatory Authority (Zera) shows.
The increased reliance on diesel-powered generators due to power cuts has also contributed to the higher consumption, despite the added cost burden of high fuel prices.
Conversely, the month of August 2024 alone saw a one percent decline, with 76,56 million litres consumed compared to 99,56 million litres in August 2023. Petrol, however, witnessed a consumption dip of nine percent from 403,41 million litres in the first eight months of 2023 to 365,38 million litres.
This decline is partly attributed to the growing popularity of electric vehicles and fuel-efficient options amidst high petrol prices. In the period, average monthly diesel consumption reached 88,04 million litres. For petrol it was at 45,67 million litres.
This also comes as Zera has intensified efforts to combat fuel quality violations, including adulteration and dilution.
The industry regulator has also revised fuel prices downward in foreign currency. Specifically, diesel dropped from US$1,55 to US$1,50 per litre, while petrol decreased from US$1,53 to US$1,49 per litre. Economist Vince Musewe emphasised to this publication that changes in fuel prices, a major cost driver, directly affect the economy.
“Fuel is at the centre of the economy and a reduction in price reduces transport and energy operating costs for businesses and individuals. That is good,” he said.
“However, whether businesses pass the reduction of fuel prices onto consumers is another issue. He said, “They likely just want to take the profits.”
Vincent Moyo, an economist and research fellow at the Public Policy and Research Institute of Zimbabwe, indicated that changes will likely unfold gradually, rather than immediately.