Fuels dominate May imports

MINERAL fuels and mineral oil products worth US$137 million were imported into Zimbabwe in May 2022 constituting 19, 2 percent of the month’s total imports.

According to statistics released by the Zimbabwe National Statistics Agency (ZimStats) the number is a decline from 22,1 percent in April 2022.

Overally, Zimbabwe’s imports grew by 12, 1 percent to US$714, 5 million from US$637, 2 million in April 2022 while exports declined by 12,6 percent to US$513,1 million in May from US$587,3 million in April.

At US$115 million machinery and equipment were the second highest imports in the month as they made 16, 1 percent of goods that entered the country in May.

Cereal imports including maize decreased from 3,6 percent in April 2022 to 3.0 percent in May 2022.

Rice, which makes the bulk of cereal imports constituted 1,4 percent in May 2022 compared to 2.5 percent in April, 2022.

“South Africa remained Zimbabwe’s major trading partner in May as Imports from the country reached US$305, 8 million from US$278, 9 million in April, while exports to South Africa closed at US$242 million compared to April’s US$232 Million,” said ZimStats.

Vehicles were the country’s third largest import in the month as US$50 million worth automobiles were brought into the country representing seven percent of the total import bill.
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Economist Tinevimbo Shava said the decline of fuels and oils imports can be attributed to
the rise in oil prices given the prevailing geo-political environment steered by RussiaUkraine war.

“Rising global inflation and interest rates are somehow reducing the affordability of fuel
and the expectation is that fuel prices will continue to go up in 2022,” he said.

“Oil derivative prices have been boosted by weak refinery capacity and the summer
driving and travel season in Europe, in turn pushing up crude demand from oil refineries.

However, a cooling of the bull rally on the supply side was attempted by the release of oil
reserves by the International Energy Agency (IEA),” he added.

On May 30, the fuel traded at US$123,0 per barrel, which was up 14,0 percent from the
same day of April 2022.

Brent prices rose in May due to the prospect of an EU ban on most Russian oil which was
ultimately agreed on May 31 and rising demand.

Brent crude oil prices averaged US$112,1 per barrel in May, which was 5,6 percent higher
than April’s price and was up 64,0 percent from the same month in 2021.-eBusiness Weekly