Published: 2016 February 09 05:52:29 (5104 Views)

GOVERNMENT is conducting a petroleum sector pricing study and working on policy measures to address the imbalances in the fuel market.

Speaking in the Senate recently, Energy and Power Development deputy minister Tsitsi Muzenda said when reviewing the fuel price.

She said government was also working on the removal of the wholesalers' storage and handling costs of $0,015/litre as the majority of companies were utilising the storage facilities operated by National Oil Infrastructure Company and, therefore, not incurring an additional storage to warrant it.

The price of crude oil has gone down on the international market. However, fuel prices on the local market have not gone down significantly.

Muzenda said the implementation of the above interim pricing measure resulted in a 7 cents and 4 cents reduction in the maximum pump prices of petrol and diesel respectively.

She said fuel prices in the country are determined through a fuel pricing model, normally referred to as a Fuel Cost Built-Up, which sets the maximum pump prices applicable at any point in time. This model was produced through consultations between the Ministry and the oil industry.
It is therefore an agreed pricing model.



- NewsDay

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