HARARE – Petrol prices are set to rocket in the next few weeks, experts predicted, driven by oil prices that touched the highest level in three-and-a-half years at $63,81 a barrel this week, which is 143 percent above the 2016 all time low of $26,21 a barrel.
Diesel drivers could be even worse off, with pump prices also projected to shoot up.
The forecast comes following a sustained increase in the price of oil, which is Zimbabwe’s top import product through the by-products of petrol and diesel.
It is also likely to drive the price of its by-products higher, thus weighing on the country’s import bill as well as average prices of goods in the economy, financial research firm Equity Axis warned.
On average, Zimbabwe spends 30 percent of its import bill on fuel which in turn is also used in various production processes.
“Developments in oil are likewise going to influence the economics of Zimbabwe, whichever direction the commodity takes,” the research firm said.
Further rises in petrol and diesel will boost inflation and put pressure on the Reserve Bank to raise interest rates again.