The Zimbabwean government and the country's oil industry have taken measures to fix the price of diesel and petrol to a lower level for all users in the country, local newspaper The Herald reported on Friday.

The paper reported that Zimbabwean farmers, the government and public transporters, who were accessing fuel from the National Oil Company of Zimbabwe at a heavily subsidized rate, will have to pay the new increased prices. Private motorists who were being charged around 700 Zimbabwe dollars (2.8 U.S. dollars) for a liter of fuel, will now pay less.

The government also announced that both A1 (communal and small- scale) and A2 (large-scale) farmers would be able to use their concessionary loans to gain access to fuel at the new price without subsidy, the newspaper said.

Dealers early this month unilaterally increased the fuel price, which resulted in the prices of petrol and diesel to reach 600- 800 Zimbabwe dollars (2.4-3.2 U.S. dollars) a liter. This triggered bus fare increases. The Zimbabwe United Passenger Company has doubled its fares since Thursday.

Energy and Power Development Minister Mike Nyambuya said that the government approved the new prices of fuel of 320 and 335 Zimbabwe dollars (1.28-1.34 US dollars) per liter for diesel and petrol respectively.

He said his ministry and the central bank would continue to support farmers with diesel at the new prices for their operations, adding the government would also make sure that the price of paraffin remains affordable to those who need it.

Source: Xinhua