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Rising Fuel Charges To Push Prices Of Goods Up

Rising Fuel Charges To Push Prices Of Goods Up

Industrialists say rising fuel prices push up the cost of production and this will result in a sharp increase in the prices of goods and services.

Early this week, the Zimbabwe Energy Regulatory Authority (ZERA) increased the price of petrol to US$1.73 per litre from US$1.68 while the retail price of diesel also went up to US$1.76 from US$1.74 a litre.

Confederation of Zimbabwe Industries (CZI) president, Kurai Matsheza, told Business Times that rising fuel costs threaten the survival of the manufacturing sector. Said Matsheza:

As industry, we cannot absorb these cost increases but we can pass them on to customers and the net effect of that is that production is going to come down because there is no way businesses are going to continue producing the same products at the same volumes with these cost increases.

With the new development in the economy the cost of production for all goods is going to go up, leaving the manufacturing sector exposed to these challenges that threaten the survival of the sector.

Unfortunately, this is the difficult operating environment the economy is living in daily.

More: Business Times

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Gringo 3 weeks ago

Dai chingwa chacho chisingakwire Mota hacho

tanakastyle 3 weeks ago

if one is handling a million if you deduct 5cents he will not be worth a million anymore , so every cent is of value as business is concerned

Asalif 3 weeks ago

so his $50 should just go crying 😭 for the benefit of who does government ever reduced tax on him because he sells his goods on cheaper price or the higher his sells the higher the tax he pays , his sells will be high because of the price so his taxes will also be high can you work for the benefit of Zimra ukwane iwe

Twabam 3 weeks ago

Guys you are getting everything right here...every cent in business some business,, their profits are those cents.

Asalif 3 weeks ago

@Blue still how many 5 cents are there in 1000 litres , these are the monies we are getting at betting houses and that is the most lucrative business these days

Blue 💙 3 weeks ago

That would be 50 bucks but as far as industry and transport sector is concerned, that increment is insignificant. You need to understand industrial product costing. These guys produce in bulk: mass production, isn't it?
Okay let me leave industry and let's do an example a bit more trivial ( l hope that's the correct word to use). Let's assume you have a Wish and transport people to and fro for a dollar, then the price of fuel is increased by 5 cents, would you increase your fee or you would maintain your $1 fee? I'm pretty sure you'll maintain your previous fee. Why? Because the rise in fuel cost doesn't affect your earnings that much. That's buffering.


Asalif 3 weeks ago

this guy who calls himself blue did he even assess his views before posting them, a truck delivering 30 tonnes of mega market rice from mutare to zvishavane uses 800litres of diesel so how many 15c are there in 800??

Blue 💙 3 weeks ago

Wooo, easy there, cowboy. That was hypothetical. Besides, fuel price rose by 2 and 5 cents, not 15 as you have said. So l guess you better assess what you have indited

Tateguru 3 weeks ago

What could be the solution?
Thinks are hard of course.

gundamwenda 3 weeks ago

u dont have a depth understanding in context of economics. Chimboti 5cents multiply by 1000 mega litres uone kuti imarii. That extra cent multiply by aggregate production required to sustain the economy it's a lot of money.

Blue 💙 3 weeks ago

No my friend. If a truck is carrying 3 tonnes of ethanol, each and every liter will share the cost of fuel. So if you need 100l to carry ethanol from point A to be at $1 per liter, then the price increases by 5 cents, that's just of$5. Spreading the cost amongst the 100l shipment will result in a direct cost of 105÷100. That's an insignificant increment which should be be buffered easily. The customer doesn't have to feel the sting of every slight increase in fuel price.
If you take the same increase in fuel price to the manufacturing sector, it shouldn't result in absurd price increases.
It's funny how in Zim, if fuel price increases by 20csnts, a bag of cement for example can go from 7USD to 13 bucks. Like really? Are you still trying to compensate for fuel price increase or there's something else in the mix.

very 3 weeks ago

*The difference between $1 RTGS and US$1 is so huge that, even if you earn $1 rtgs per day, you still won't have US$1 in one year.*

mumu 3 weeks ago

zvikaramba zvakadai kusvika 2025 vana vachange voita matrip ekunoona chingwa

🤨🤨 3 weeks ago

Old Post sir

Blue 💙 3 weeks ago

How much does an increment of 2 and 5 cents affect the cost of production? Like, really. A few cents. These guys are pathetic. No wonder the president opened up the flood gates of importation. These industry guys are greedy.
Teuly, we cannot be talking of sharp increases in prices as if a truck can only carry a single 2kg pack of rice 🍚. Isn't the transport sector all about bulk?
This country is being contused by it's people.

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