Russia-Ukraine Conflict Unsettle Global Energy Markets
The ongoing Russia-Ukraine conflict which has unsettled global energy markets has impacted local fuel prices resulting in the Zimbabwe Energy Regulatory Authority (ZERA) reviewing upwards the prices of diesel and petrol for a second time in one week.
In a statement, earlier posted on Pindula News platforms, the regulatory body said the new price of diesel 50 in local currency is $218.01 per litre while that of petrol (E10) is $216.78.
In US dollars, the new price of diesel 50 is US$1,68 while petrol is now pegged at US$1,67. Reads part of the statement from ZERA:
Operators may sell the petroleum products below the prescribed prices depending on their trading advantages and should display prices in a prominent place as provided for by the fuel pricing regulations.
Russia – Ukraine Conflict vs Global economy:
- Russia invaded Ukraine on 24 February 2022 over alleged human rights abuse, on pro-Russian separatist groups, by the Kyiv administration.
- Kyiv denies the allegations, brands them as propaganda.
- Western states, including NATO, the European Union, the United Kingdom and the United States of America, imposed sanctions on Russia making it impossible for Kremea to trade with the majority of the international community.
- Russia retaliated by imposing sanctions on those countries.
- Russia is one of the biggest producers of oil, its exports account for eight per cent of the global oil supply.
- Russia and Ukraine’s wheat exports constitute about 40 per cent of the global wheat supply.
Responses to developments:
- The United States reportedly held talks with Venezuela, another oil exporter amid reports that the USA intends to lift sanctions on its neighbour so as to cover the void left by Russia.
- France is seeking measures to address over-reliance on Russia.
- Zimbabwe is hoping that oil deposits in Muzarabani will produce enough oil for local consumption and exportation. (Invictus Energy Secures Drilling Rig For Muzarabani Oil Wells)
- The Southern African country has also been urged to revive the Agriculture sector.
