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Outrage as Mnangagwa raises fuel prices in Zimbabwe

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Fanuel Jongwe

Harare – Zimbabweans reacted with outrage on Sunday to a sharp rise in
fuel prices announced by President Emmerson Mnangagwa in a move to
improve supplies as the country struggles with its worst gasoline shortages
in a decade.

After years of international isolation, Zimbabwe’s economy has been in
decline for more than a decade with cash shortages, high unemployment
and a recent scarcity of basic staples like bread and cooking oil.

In a televised address late Saturday, Mnangagwa said prices of petrol and
diesel would more than double to tackle a shortfall caused by increased
demand and “rampant” illegal trading.

Mnangagwa, who took over from longtime leader Robert Mugabe and won
a disputed election last July, also announced a package of measures to help
state workers after strikes by doctors and teachers over poor pay.

He said from midnight on Saturday, petrol prices would rise from $1.24 a
litre to $3.31 (2.89 euros) and diesel from $1.36 a litre to $3.11.

But many Zimbabweans criticised the move, worrying a knock-on spike in
other costs would worsen an already difficult economic situation and
trigger protests and strikes.   

“I am not a politician and neither am I an economist but you don’t need a
rocket scientist to tell you that we are now headed for the worst following
the fuel price madness,” said William Masuku, 32, a car dealer in Bulawayo, the country’s second largest city.

Victor Nyoni, head of a local business body, said the fuel prices would push
up the cost of other goods with businesses likely to pass on the higher
transport costs to consumers.

The president’s announcement came after fuel shortages which began in
October last year worsened in recent weeks with motorists sometimes
spending nights in fuel pump queues that stretch for kilometres.

The Zimbabwe Congress of Trade Unions (ZCTU) said the government had
demonstrated a lack of empathy for the already-overburdened poor.

“The government has officially declared its anti-worker, anti-poor and anti-
people ideological position,” it said. “Workers’ salaries have been reduced
to nothing and our suffering elevated to another level.”

Nelson Chamisa, who heads the opposition Movement for Democratic
Change (MDC) said the situation was “descending into a humanitarian
crisis”.

Evan Mawarire, a cleric and activist who led the 2016 anti-government
protests that shut down major cities, added: “You have cornered us and you
leave us no choice. It’s time to mobilise every person who truly loves
Zimbabwe.”

“Those in government may not admit it but they know in their hearts that
they have failed,” said Edmore Phiri, a tired-looking motorist who had just
spent a second night in a petrol queue in Avondale suburb.

“We are not going anywhere with these piecemeal solutions that are not
solutions. 

“You can’t have a country where people sleep in cars for days for a
commodity that should be readily available.”

Mnangagwa, who has pledged to revive the moribund economy, blamed the shortfall on increased fuel usage “compounded by rampant illegal currency
and fuel trading activities”.

The government claims fuel prices were lower than in other regional
countries, saying some foreigners were taking advantage and buying fuel in bulk for resale elsewhere.

Mnangagwa said the new measures were aimed at curbing a burgeoning
speculative parallel market in which fuel was being sold at five times the
official price.

“It’s going to reduce demand for fuel because it’s now a bit expensive and
that will deal with speculative demand if it was there,” said economist
Godfrey Mugano.

Mnangagwa also warned the government would deal harshly with those
“bent on taking advantage of the current fuel shortages to cause and
sponsor unrest and instability in the country”.

Government doctors went on a 40-day strike in early December, demanding salaries in US dollars and improved working conditions, while
teachers’ unions called a strike this week for better pay but their calls went
largely unheeded.

Although Mnangagwa announced a package of measures “to cushion
government workers”, he gave few details.

Despite the price hike, diplomats and tourists would be able to access
cheaper fuel at certain pumping stations.

“The intention is to create a constant supply of fuel for diplomats and
tourists to manage the country’s image,” said Mugano. 

“Those designated fuel stations will be able to restock easily from the sales
they make in US dollars.”

SOURCE: AFP

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