-ZERA warns service stations on overpricing
ROSELINE MUTARE
MASVINGO–A wave of fare increases by commuter omnibuses has left many passengers stranded in Masvingo and nearby urban settlements mainly Nemamwa.
From the populous suburb of Mucheke, fares have gone up from R5 to between R10 and R20 or equivalent of a dollar.
Those who commute from Nemamwa to the city are now forking out $2 for one way trip up from a dollar.
Zimbabwe Energy Regulatory Authority increased the price of petrol on march 4, from $1.54 to $1.71 although most service stations are charging between $1.77 and $1.85 depending on the retailor.
Diesel went up from $1.52 to $1.77, but most service stations are pricing their commodity at between $1.85 and $1.90 and this has triggered the recent fare increases according to transport operators.
“I used to pay R5, which is approximately $0.25 to get into town, but now the fares are $0.50 and even $1. This drastic increase is untenable for us,” said Chido Muvhenge from Mucheke F.
Another passenger, Anderson Chimedza from Runyararo West, shared similar concerns.
“As a vendor, my trips to town to sell goods are now less viable due to inflated transportation costs. Walking is impractical in this weather, thus we have no choice but to absorb these increased fares which are eating into our profits,” he added.
Kombi operators argue that the fare hikes are driven by unavoidable increases in fuel prices.
Eliot Muchada, a local taxi driver told The Midweek Watch that, “We are not profiteering, our objective is merely to break even given the current fuel market volatility, some of it caused by greedy retailors who have increased the commodity beyond the ZERA recommended prices,” he said.
The fare adjustments have prompted pleas from both passengers and drivers for regulatory oversight from authorities to stabilize transport costs.
“I believe it is imperative for the government to intervene and implement fare caps before the situation gets out of hand,” suggested Tichaona Jayaguru, a kombi driver.
These fare increases have broader implications, negatively impacting both vendors and commuters who are already grappling with the rising cost of living.
Prices of goods and services are likely to follow suit as manufacturers and retailers try to break even.
By the time of posting the story the international price of brent crude oil had gone down from $100 a barrel to $88 per barrel and it is left to be seen whether the government will respond swiftly in the same manner that they reacted when the prices went up.
One small shop operator in the CBD said the sharp increase of fuel by the government was not warranted in the first place since the Minister of Energy July Moyo claimed in Parliament that the country enjoys three months supply of the precious commodity.
“It is unfair to increase fuel prices on the same day that the international prices go up yet we claim to have three months cover, since most fuel stations are owned by zvigananda we suspect collusion because the speed at which they effected the new prices is suspicious. ZERA recommended $1.77 but they are charging $1.88 or $1.90,” said the shop operator on condition of anonymity as he is a member of the ruling party.
Meanwhile, a ZERA employee who is not authorized to speak to the press told The Midweek Watch that they are seized with the issue of overpricing by retailers and they will look into the matter on case by case basis.
“Today a meeting was held on the matter and they will be dealt with on case by case basis because those who are charging above the recommended prices are flouting their license requirements.
“On the recent fuel decrease on the international market, it is difficult to come up with a position right away as this is a trend, tomorrow we may work up with different prices and for us to reduce or increase the prices there are procedures like writing to the authorities like ministries of energy and finance for approval and that takes time,” said the employee.
