Zimbabwe’s economy appeared for all intents and purposes to be on the ropes as President Emerson Mnangagwa, resolute but clearly concerned, addressed media at State House in Harare to announce that the petrol price would double from $1.38 and $1.43 to $3.11 and $3.31 for diesel and petrol respectively.
The announcement is said to have come as no surprise as the country has struggled with its fuel supply since last year.
With queues snaking down roads and some pumps running dry, the price increases are intended to curtail demand as supply remains strained.
In the meantime the weakened economy is limping along, fragilely supported by a bond note base that’s pegged to the dollar but incapable of dealing with inflationary pressures that have long haunted the country’s commercial concerns.
Flanked by a number of his ministers, Mnangagwa warned private companies against exploiting the fuel crisis.
He indicated that the steep price increase should be seen as a sure sign by government to steady a fuel-starved market that was increasingly falling prey to the whims and desperation of an exploitative private sector and a displeased citizenry.
He promised that the country would have a new currency before the end of the year and that Zimbabweans could expect an economic turnaround.
But critics warned it wouldn’t take long before Sunday’s price hikes took effect and when they did, widespread civil unrest could ensue.
