BY TAURAI MANGUDHLA
THE Zimbabwe Energy Regulatory Authority (Zera) increased the price of fuel by 3% effective yesterday in a move likely to stoke yet another round of price hikes.
Prices of basic goods and services have been skyrocketing as the local currency slides and inflation races away, now at 131%.
The price of diesel went up to US$1,76 per litre from US$1,74, while petrol is now US$1,73 from US$1,68.
Although Zera also announced the Zimbabwe dollar equivalent of the new prices, dealers are selling fuel exclusively in hard currency.
On May 20, fuel prices went up hardly a week after government pledged to lower the pump price after increasing ethanol blending from E10 to E20.
The latest fuel price increase comes as reports indicate that some people have been forced to switch to cheaper modes of transport such as bicycles.