Fuel Now Officially Cheaper In US Dollars Than Zimbabwe Dollars

Fuel in Zimbabwe is now surprisingly cheaper in United States dollars compared to that priced in Zimbabwean dollars.

A litre of petrol costs an average $97 whilst the Zimbabwean dollar trades at an average of $81 to the United States dollar at the Reserve Bank of Zimbabwe (RBZ)’s weekly auctions. On the black market the Zimbabwean dollar trades at $90 to the United States dollar.

The blended price of fuel costs US$1,19 per litre.

This effectively makes fuel in Zimbabwe dollars more expensive than in foreign currency. This has seen a large number of Zimbabwean motorists preferring to purchase fuel using foreign currency than the local dollar.

The exchange rate is not the only reason why motorists prefer using forex.

The use of forex is fueled by the daily transaction limits or restrictions imposed by the Reserve Bank of Zimbabwe (RBZ) recently.

Zimbabwe Energy and Regulatory Authority acting chief executive Eddington Mazambani told The Finacial Gazette the last fuel price increase was announced on the basis of the prevailing RBZ exchange rate,-iharare.com