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Service stations continue to sell fuel at old prices
Jeffrey Gogo, The Herald (Zimbabwe)
August 22, 2006

http://www1.herald.co.zw/inside.aspx?sectid=7653&cat=8&livedate=8/22/2006

MANY privately owned service stations have purportedly run out of fuel, in what observers say amounts to a protest against the petroleum prices announced by Government last week.

Others had stopped selling fuel altogether, suggesting the commodity was being diverted to there parallel market, where it was fetching up to $800 a litre.

The Herald Business established yesterday that the majority of service stations were still selling both diesel and petrol at the old prices of between $680 and $700 per litre respectively.

For example, petrol was selling at $680 per litre at Bobsouthon Service Station at Rhodesville in Harare yesterday while motorists were paying a similar price for diesel at BP Southerton.

Petrol and diesel prices have been gazetted at $335 and $320 per litre respectively. An official at BP Southerton who did not want his name published defended their action on the grounds they were still selling old stock. Several other service stations in the central business district claimed they did not have fuel while the few that had it were asking for ungazetted prices.

While no official comment could be obtained from Government yesterday, it has previously warned errant fuel dealers would be ruthlessly dealt with.

Analysts say dealers selling fuel at above the gazetted prices were fuelling the black market.

"Foreign currency demand on the parallel market has remained high, partly as a result of the need to import fuel by some independent fuel players," noted one Harare economic commentator who refused to be named. While welcoming the price cut, some motorists feared the absence of a reliable fuel supply could signal the return to long queues and thriving fuel black market.

Efforts to get a comment from the Petroleum Marketers’ Association of Zimbabwe were fruitless.

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