HARARE, July 9 (Xinhua) -- Zimbabwe announced its second fuel price reduction in two weeks on Wednesday, amid market concerns that renewed conflict in the Middle East could disrupt global oil supplies.
According to the Zimbabwe Energy Regulatory Authority, the price of diesel fell to 1.87 U.S. dollars per liter from the previous cap of 1.99 dollars. Blended petrol dropped to 1.93 dollars per liter, down from the 1.98 dollars set two weeks ago.
Before the prices began to drop on June 19, diesel and petrol peaked at 2.09 dollars and 2.08 dollars per liter. However, international oil market stability remains volatile due to the resumption of conflicts in the Middle East on Thursday.
Local motorists expressed deep concern over the sustainability of the price cuts. "We are happy about the reduction, but we don't know how long it will last," said Shepherd Towindo, a resident in the Zimbabwean capital of Harare.
He noted that renewed hostilities threaten shipments through the Strait of Hormuz, a crucial choke point that handles a significant share of the world's petroleum liquids.
In Zimbabwe, the cost of basic commodities closely tracks fuel prices. Since the Middle East conflict erupted, the government has taken proactive measures to curb domestic inflation. In March, authorities adjusted fuel taxes and hiked the mandatory ethanol-to-petrol blending ratio from 5 percent to 20 percent to suppress rising import costs. ■