HARARE – In a significant reversal of policy, Zimbabwean authorities have announced that motorists can now use the newly introduced ZiG currency to purchase petrol and diesel at designated fuel stations.
According to the Zimbabwe Energy Regulatory Authority (ZERA), the price for a litre of diesel will be ZiG22.24, while petrol will be charged at ZiG21.15 per litre. These prices, effective for May 2024 and based on M-1, will remain in place until 4th June 2024, as stated by ZERA in an official statement.
ZERA also clarified that while these are the prescribed prices, fuel operators have the discretion to sell petroleum products below these rates based on their trading advantages. However, they are required to prominently display prices as per fuel pricing regulations.
Despite the announcement, several service stations, including the State-owned Zuva, had not yet adjusted their prices to reflect ZiG denominations, as observed by NewZimbabwe.com over the weekend.
Earlier statements from Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu had emphasized that the adoption of ZiG would not be mandated on businesses, given the country’s utilization of a currency basket that includes the widely preferred United States dollar.
Introduced at a rate of US$1: ZiG13, the ZiG currency faces similar challenges to its predecessor, the RTGS, which suffered heavy devaluation due to market forces and illicit trading activities.
Despite efforts by the central bank to promote the new currency, its widespread acceptance remains limited. Many informal shops, vendors, and even pirate taxi operators are hesitant to transact using ZiG. Critics argue that for ZiG to gain public trust, it should at least be accepted at essential service points such as fuel stations and government offices.
As discussions around the adoption and usability of ZiG continue, its acceptance at fuel stations marks a significant step in its integration into daily economic transactions. However, its broader acceptance across various sectors remains a subject of scrutiny and debate among Zimbabwean citizens.
