Page 12 - AfrOil Week 11 2022

AfrOil POLICY AfrOil

Zimbabwe’s president orders review

of fuel taxes to ensure price stability

ZIMBABWE ZIMBABWE’S President Emmerson Mnan-
gagwa has ordered a review of fuel taxes to
ensure stability in the prices of the commodity.
In an opinion piece published in the latest
issue of the state-owned Sunday Mail, the pres-
ident said he intervened late last week to pre-
vent a third fuel price increase in a week as the
southern African country continues to suffer the
adverse impact of the Russia-Ukraine war.
“We are looking at the whole duty frame-
work to cushion our economy from shocks and
pressures from galloping fuel prices,” he wrote. Pres. Mnangagwa (Photo: Twitter/@edmnangagwa)
“There is no need for panic. I have already
directed the Ministry of Energy and Power through its eastern neighbour. According to
Development to review and reduce duty and ZERA, government taxes contribute about 26%
surcharges on fuel so that the pump prices of to the retail fuel price.
petrol and diesel remain manageable.” The increase in the price of fuel is likely to
Last Monday (March 7), the pump price of further push the cost of other commodities as
diesel and petrol was on average $1.39/litre but well as inflation up from 66.1% recorded in
had risen to $1.75 by Friday. The Zimbabwe February.
Energy Regulatory Authority (ZERA) blamed Finance Minister, Mthuli Ncube, in an
the Russia-Ukraine war for the increases. It engagement with local business executives last
announced on Saturday that a third price rise week said his ministry had lowered tax on fuel
was averted following government intervention. from 12, 7% to 8, 7% since September 2021.
Fuel prices in Zimbabwe are among the “We could lower it further but it’s difficult to
highest in southern Africa, including in coun- get it to zero because we have pressures as gov-
tries such as Zambia, which is further away ernment such as civil servants salaries and so
from ports in Mozambique and imports its fuel forth,” the Sunday Mail quoted him as saying. ™

Nigerian rights group questions

government spending on refineries

NIGERIA A Nigerian rights group has threatened to sue operators.
the government for the alleged mismanage- Nigerian refineries have been closed for more
ment of funds approved for the rehabilitation, than a year, leading the West African country
operation and maintenance of the country’s oil to rely heavily on imports for its energy needs,
refineries. despite it being Africa’s largest oil producer. In
The Socio-Economic Rights Accountability the wake of the Russia-Ukraine conflict, pres-
Project (SERAP) said its notice to authorities is sure has been growing on Nigeria to increase its
in the public’s interest, and that authorities must production and exports.
prosecute anyone liable. The government has This week, oil prices briefly hit $139 per
until March 14 to respond to the notice. barrel, the highest level since 2008, after the US
According to SERAP, Nigeria had spent announced a ban on Russian oil imports while
nearly $400mn on maintenance of the refiner- the European Union unveiled a plan to dramat-
ies between 2015 and 2020, with little impact. ically reduce dependence on Russian oil and gas.
It further is demanding that authorities inves- Before Nigeria can benefit from exporting oil at
tigate the import of more than 170mn litres of higher prices it first must meet local consump-
refined fuel from Europe in January by four oil tion demand.

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