Zimbabwe is on fuel price hiking spree. The recent increase in fuel prices, the second time in a week did not go well with the public. Most pumps remained dry. There is no end to shortages that are spiking inflation. There is a widespread protest against the high cost of living and scarcity of essential goods. A liter of petrol would now cost 7.45 Zimbabwe dollars, as against 6.10 dollar earlier, an increase of 22%. Diesel costs 7.19 a liter, an increase of 23%. Increases in fuel prices are adding to inflationary pressures. Electricity cuts are forcing businesses to use expensive diesel generators to continue with their operations. Fuel prices (petrol and diesel) have gone up by a whopping 456% this year, in tandem with the in the value of the local RTGS currency, renamed as the Zimbabwe dollar last month. The biggest fuel price hike in January this year, a 150% increase, triggered violent protests by masses, leading to the death of a dozen people by the army. On July 13 also, fuel prices were spiked up by 16% on the plea that fuel was considerably cheaper than in neighboring countries. The Zimbabwe dollar was trading recently at 8.88 against the US dollar on the official interbank market. However on the black market, US $1 fetched 10.5 Zimbabwe dollars.
