Zimbabwe Boosts Fuel Price, Pledges Transport Subsidies
- Fuel duties to be cut by more than half to ease price increase
- Gasoline price increased by 46% on Tuesday, government says
A view of a crowded street in Harare, Zimbabwe
Photographer: Mustafa Kamaci/Anadolu Agency/Getty Images
Zimbabwe boosted gasoline prices by 46% even as it said it will subsidize public transport and cut fuel duties by more than half to try and ease the impact on its poorest citizens.
The price of a liter of gasoline was increased to 4.97 RTGS dollars, a quasi-currency that isn’t used outside Zimbabwe, according to a government regulator. That’s equivalent to about $1.42 at the interbank exchange rate. The increase came after the government forced fuel importers to buy dollars on the interbank market rather than at a preferential 1:1 rate from the central bank. The move is a bid to end crippling fuel shortages as the government cannot afford to fund the purchase of adequate supplies.