By Pretty Chavango.
Harare, Zimbabwe. (News Of The South) – The once sunshine city has now turned into a sorry sight, with rubbish strewn all over, potholes filled with stagnant water a common sight, informal traders who vary from young children to the infirm are everywhere some selling cooked food.
Amidst all this is the Harare city council’s vision 2025 is to build a $20 million dollar shopping mall .
At a time where much needed resources need to be channelled to much needed repair of infrastructure, there is much need to engage the public on what they need rather than what they would want to take priority in making Harare city as it was before.
Many people had embraced the slashing of fuel prices as a welcome move, however as this came concurrently with the increase of the excise duty on fuel by $0.10 per litre the anticipation was short lived as the hike has much effect on the final consumer, many had expected that it would result in public transport prices being affordable and somewhat stable however things have remained quite the same.
The cosmetic reduction of prices from an average price of $1.52 to $1.44 per litre for petrol and $1.44 to $1.32 for diesel respectively, does not bring meaningful benefits for the ordinary Zimbabweans especially since it is against the backdrop of a $0.10 increase in excise duty.
Any hope of reduction of public transport fares have been thwarted, coupled with the realisation that the demolition will mean public transport will be displaced is bound to affect the general public.
In a press release issued by Zimbabwe Coalition on Debt and Development (ZIMCODD) a social and economic justice movement noted that wider consultations should have been done with various stakeholders taking into account the consumer’s voices.
‘’The recent hike in excise duty on fuel is therefore regressive and it exposes government’s policies that are not pro-people. The development affects the final consumers who are already heavily taxed’’ .
ZIMCODD has urged government to have progressive taxation policies that benefit ordinary citizens and that any inconsistencies need to be addressed to avoid inconveniences to industry and final consumers, there is much need to engage the public on issues that affect them .
It is interesting to note how other countries like neighbouring South Africa have already begun to enjoy the benefits of reduced global petroleum prices.
On January 16, 2015 Reuters reported how the sliding oil prices were positively impacting on the South African economy.
’’JOHANNESBURG Jan 16 (Reuters) – South Africa’s government bonds fell to their lowest in nearly 22 months on Friday, in a market increasingly seeing the chance that slowing inflation due to sliding oil prices will keep interest rates depressed.’’
Fuel prices have a bearing on commodity prices and the economic performance in general. Failure by Zimbabwe to make meaningful adjustment on fuel prices means that the possible ripple effects cannot be realised.
Fuel prices are still too high with ethanol prices more expensive in Zimbabwe compared to other countries coupled with the fact that Zimbabwe is a landlocked country with the Beira pipeline as the limited option to transportation of oils causing an increase in overhead costs .
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