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CCZ statement on fuel price increases
Consumer Council of Zimbabwe (CCZ)
September 09, 2005

The Consumer Council of Zimbabwe receives the news of the 130 percent hike in fuel with both discomfort and optimism that hopefully the increase bodes an improvement in fuel supplies. The increase is regrettable but inevitable in view of a persistent rise in international oil prices.

Nonetheless, the increase - the second such increase in three months, will configure another wave of price increases thus fuelling inflation. It is hard to contend with the fact that the fuel price increase comes on the back of another wave of price increases occasioned by the 17,5 percent Value Added Tax on some goods and services.

The current economic circumstance where prices of foods and services are rising daily is posing great challenges on the life and dignity of consumers. Economic experts argue that the recent increase still falls far short of regional benchmarks where fuel is selling for around US$0,44 cents per litre. This is an alert to consumers of another impending fuel price hike in the not too distant future.

On behalf of consumers, the CCZ is appalled at the rate at which prices of goods and services, including fuel, are increasing. The CCZ further notes with disappointment that despite the now regular fuel increases, there is still no improvement in supplies. Increases of this magnitude are not healthy to the economy at all. It is also sad to note that it is against this background that the nation wants the total removal of price controls. If this is the direction the nation wants to take, then fuel costs must be shared equally among all citizens. It is our submission that the total removal of subsidies on key foodstuffs at this juncture will hurt consumers further. The CCZ is not against the free market economy, but it must be guided by solid consumer protection mechanisms. With the magnitude and frequency of price increases, lifeline tariffs are essential for consumers.

The CCZ would like to stress that on foodstuffs, price controls were only imposed on key foodstuffs such as flour, bread and mealie meal. The rest of the foodstuffs are monitored, but most of the goods are still in short supply. There is also need to come up with a sustainable pricing policy on fuel.

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