Fuel price cut likely

Fuel price cut likely
Published: 19 April 2018 (101 Views)
FUEL prices are expected to decline in the near future amid indications that Government is contemplating further reducing excise duty on diesel and petrol with a view to contain price increases, President Mnangagwa said yesterday. On January 22, Government reduced Excise duty on petrol from 45 cents per litre to 38,5 cents per litre, while duty on diesel and paraffin fell from 40 cents per litre to 33 cents per litre.

President Mnangagwa said the mooted Excise duty reduction will also enhance competitiveness of local products on the export markets. He also said efforts were underway to arrest cash shortages in the country, which have caused "great hardships" to citizens.

The President said this yesterday while officiating during Zimbabwe's 38th independence anniversary celebrations at the National Sports Stadium in Harare. This comes as Government remains seized with efforts to cut high production costs that have been dogging the country's manufacturing sector.

"My Government is attending to various production challenges and will cut excise duty on diesel and petrol to bring down prices for consumers and at the same time enhance competitiveness," said President Mnangagwa.

Since Government introduced Statutory Instrument 64 of 2016, the manufacturing sector has been witnessing a steady rise in capacity utilisation and the general availability of locally produced goods.

Several companies such as cooking oil manufacturer Willowton and health and wellness products producer Nestle Zimbabwe, have ramped up production.

Willowton, which also produces soap, recently launched a $40 million refinery in Mutare, and there are plans to venture into candles, margarine and rice production. Nestle also commissioned a state-of-the-art $500 000 Cremora filling and packaging plant, which is expected to see the country saving $2 million through import substitution per annum.

President Mnangagwa also said given the "goodwill" the country continues to receive from around the world, investors were stampeding for investment opportunities which will result in the economy growing by almost 1 percent compared to last year.

"This renewed domestic and foreign investor confidence will see our projected economic growth increase from 3,7 percent last year to 4,5 percent in 2018," he said. The economic growth is expected to be underpinned by strong performances in the mining, agriculture, tourism and construction sectors.

Regards agriculture, Government is pressing ahead with the Command Agriculture program, which has seen output rising, in the process ensuring national food self-sufficiency. Command Agriculture started with the maize crop in 2016 but has since been widened to cover livestock, fisheries and wildlife.

Beef cattle breeding is set to get $10 million so as to boost output, while a budget of $37 million has also been set aside towards the national irrigation rehabilitation and development program.

President Mnangagwa said they continue to source modern irrigation equipment from around the world, with Russia and Belarus making firm commitments to set up agriculture equipment plants. At the same time, Government continues to look up to the mining sector to continue contributing to economic growth.

Key minerals such as gold, platinum, nickel and diamonds are expected to spur economic growth. President Mnangagwa said Government will soon formulate a comprehensive diamond policy that will guide operations, development and sustainability in the sector.

"Related thereto, the Zimbabwe Consolidated Diamond Company will commence full commercial production of conglomerate diamonds in the second quarter of this year following the installation of a conglomerate processing plant," said President Mnangagwa.

Minerals, particularly gold, are central in attracting foreign currency. However, President Mnangagwa called for sustainable exploitation of resources without degrading the environment. In terms of cash shortages, President Mnangagwa said they are "working tirelessly to solve" the challenges.

He said Government was accelerating the implementation of measures to resolve the shortage of cash within the economy, by mobilising foreign finance from regional and international financial institutions, increasing cash and currency importation, opening up the economy to investment, and enhancing exports to increase the supply of foreign currency.

- the herald

Tags: Fuel, Price, Cut,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Fixing Zimbabwe's 'fantasy economics'

by Martyn Davies and Hanns Spangenberg | 23 May 2018 | 10 Views

ZLHR challenges govt to implement the new constitution

by Stephen Jakes | 23 May 2018 | 14 Views

Blackdiamond releases new video and reveal new management

by Tidi Kwidini | 23 May 2018 | 15 Views

Obert Mpofu welcomes Kasukuwere

by Staff reporter | 23 May 2018 | 15 Views

Mugabe fails to appear before Mliswa

by AFP | 23 May 2018 | 17 Views

Zimbabwe govt needs to regain the trust of the people

by Staff reporter | 23 May 2018 | 10 Views

PHOTO: Shamu getting arrested photo goes viral

by Staff reporter | 23 May 2018 | 19 Views

Zimbabwe embarks on broadband connectivity upgrade

by Staff reporter | 23 May 2018 | 8 Views

Jonathan Moyo could be working for Mnangagwa, says Mawarire

by Staff reporter | 23 May 2018 | 13 Views

Mnangagwa paid a $2,000 bribe in Mozambique

by Staff reporter | 23 May 2018 | 15 Views

Councillors accused of vote-buying

by Staff reporter | 23 May 2018 | 60 Views

MDC poll demands outrageous, says Charamba

by Staff rpeorter | 23 May 2018 | 69 Views

BAZ to increase TV, Radio service coverage

by Staff reporter | 23 May 2018 | 54 Views

Zanu-PF warns party members against violence

by Staff reporter | 23 May 2018 | 57 Views

'Special anti-graft unit to reinforce Zacc operations'

by Staff reporter | 23 May 2018 | 55 Views

Khupe allies hits out at Chamisa's 'violent, vulgar' youths

by Staff reporter | 23 May 2018 | 72 Views

Confusion hits MDC-T primaries

by Staff reporter | 23 May 2018 | 59 Views

Mnangagwa heads back to Manicaland

by Staff reporter | 23 May 2018 | 63 Views

MDC Alliance's ballot paper demands slammed

by Staff reporter | 23 May 2018 | 55 Views

Police shoot two violent murder suspects

by Staff reporter | 23 May 2018 | 45 Views

Khupe, Chamisa parties to use same name, logo?

by Staff rpeorter | 23 May 2018 | 75 Views

Banking sector demands 60% pay rise

by Staff reporter | 23 May 2018 | 53 Views

Dembare players threaten strike

by Staff rpeorter | 23 May 2018 | 54 Views

Zec sends text messages to 3m registered voters

by Staff reporter | 23 May 2018 | 56 Views

Zimbabwen family in Johannesburg hostage drama

by Staff reporter | 23 May 2018 | 58 Views

Makamba trying to push Mlotshwa out of Telecel Zimbabwe

by Staff rpeorter | 23 May 2018 | 58 Views

MDC-T councillor arrested

by Staff reporter | 23 May 2018 | 67 Views

'Army won't let Chamisa rule Zimbabwe'

by Staff reporter | 23 May 2018 | 71 Views

Zapu urges people to physically inspect voters roll

by Staff reporter | 23 May 2018 | 26 Views

'Electorate misunderstood me,' says Tshinga Dube

by Staff reporter | 23 May 2018 | 32 Views

Chamisa, Khupe feud back to High Court

by Staff reporter | 23 May 2018 | 33 Views

Dlamini crowned Matebeleland North's Miss Tourism

by Staff reporter | 23 May 2018 | 44 Views

Mugabe to appear in parliament today

by Staff reporter | 23 May 2018 | 31 Views

Obert Mpofu to appear in court

by Staff reporter | 23 May 2018 | 35 Views

National Youth Service graduates defect to NPF

by Staff reporter | 23 May 2018 | 32 Views

Soldier gets 7 years for setting lover ablaze

by Staff reporter | 23 May 2018 | 29 Views

Zanu-PF youth plot Mnangagwa interface rally

by Staff reporter | 23 May 2018 | 30 Views