Govt explores ways to reduce fuel price burden on people

Source: www.zimbabwesituation.com

Source: Govt explores ways to reduce fuel price burden on people – herald Vusumuzi Dube THE Government is exploring fiscal measures that would lead to a reduction in fuel prices, thereby cushioning ordinary people and businesses in the face of global oil supply volatility occasioned by the ongoing Israel-United States war against Iran. Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said this in Bulawayo yesterday on the sidelines of the Ingutsheni Central Hospital fundraising luncheon, which was graced by President Mnangagwa. He said authorities were already reviewing taxes, levies and subsidies to cushion consumers from rising global fuel costs.

Prof Ncube said Government’s immediate priority is to ensure a consistent fuel supply while cushioning businesses and consumers, particularly through targeted support on diesel, which is critical for production and transportation. “As you know, we are all affected by the geopolitical situation in the Middle East, which has pushed up our oil prices, which then impact the final product price, the price of petrol, and the price of diesel in the main. So, we are price takers, because we import fuel,” said the Minister. “But as Government, we have decided that we need to ensure that there is an adequate supply of fuel, at least over the next three or so months. “So, we’ve negotiated with suppliers, and they’ve assured us, but also through the financial structures we’ve put in place, that this fuel supply will be available. So, we won’t have a shortage of fuel”.

Prof Ncube said Treasury was also looking at the various taxes and levies being charged on fuel to see whether they can be adjusted downwards, which will subsequently result in the reduction of fuel prices. “As Government, we are currently again looking at various taxes and levies to see if we can do further adjustments going forward, so as to cap the impact of this hike in global prices,” he said. “So, citizens can always expect us as Government to act in their interests, and they should watch the space as we go forward. “There is indeed a possibility that we will reduce (the fuel prices), but we are just looking at ways to do it, because we have to do it in a way that is responsible. We don’t want to reduce it and then prices keep rising, and then we are now caught in a quandary. “We have to balance everything and see how to do it, but we have every intention to contain the increase in the prices using our taxes, our levies and our subsidies”. Prof Ncube said another avenue they were working on to help contain the charges was the blending services, where they aim to increase the blending percentage from five to 20 percent.

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Related topics: fuel prices, government policy, Mthuli Ncube, economic measures, fuel subsidies, Zimbabwe government, geopolitical impact, Middle East conflict, energy supply

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