In March 2025, Zimbabwean consumers will experience a slight increase in petrol prices, with the price per litre rising to US$1.54 from US$1.53 in February. Conversely, diesel prices have seen a minor decrease, dropping to US$1.55 per litre from US$1.58 last month. These adjustments in local fuel prices are largely influenced by fluctuations in global oil markets, particularly changes in the price of Brent crude oil, geopolitical tensions, and blending costs.
In February 2025, the average price of Brent crude oil was approximately US$79.27 per barrel, showing a minor decrease from January’s average of US$80.12 per barrel. Global oil prices are affected by multiple factors, including geopolitical events, supply decisions by major oil-producing nations, and shifts in global demand.
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) has played a crucial role in managing the global oil market. In late 2024, OPEC+ delayed planned production increases due to weaker-than-expected demand and growing competition from non-member countries. The production boost, initially scheduled for January 1, 2025, was rescheduled for April 1, 2025, with an extended production period running until October 2026. This strategic decision was aimed at stabilising oil prices amidst market challenges.
Geopolitical factors have also contributed to price volatility. In February 2025, the announcement of new U.S. tariffs raised concerns about the potential impact on global economic growth and energy demand. Despite these worries, oil prices saw a slight rise, with Brent crude futures increasing by 0.7 percent to US$75.17 per barrel. Geopolitical uncertainty tends to influence market sentiment, which in turn affects both global oil prices and local fuel costs.
The relationship between global oil prices and local fuel costs is evident, with fluctuations in Brent crude prices directly impacting the cost of refined petroleum products. The recent increase in petrol prices, coupled with a decrease in diesel prices, reflects these global market trends.
Economic analyst Namatai Maeresera highlights the potential consequences of rising oil prices for the local economy. “An increase in global oil prices can lead to imported inflation,” Maeresera explains. “As fuel prices rise, transportation and production costs increase, often passed on to consumers. In the short term, this can reduce consumers’ purchasing power and dampen economic activity.”
Looking ahead, forecasts suggest that Brent crude oil prices will average around US$74 per barrel in 2025, with a further decline to US$66 per barrel in 2026. These projections are based on expectations of increased global oil production and the possible stabilisation of geopolitical tensions. However, unforeseen events could disrupt these predictions, leading to further volatility in both global oil prices and local fuel costs.
The dynamic between global oil prices and local fuel costs underscores the importance of monitoring international market trends. Consumers and businesses alike should remain attentive to fluctuations in the oil market, as changes can significantly impact everything from transportation expenses to the prices of goods and services across the economy.
In other news – Minnie Dlamini expresses gratitude after winning at the 2025 Forbes Africa Awards
South African media personality and entrepreneur Minnie Dlamini is basking in the glory of her latest achievement after being honored at the prestigious 2025 Forbes Africa Awards. The celebrated star took to social media to announce her win, revealing that she had been awarded the Excellence in Entertainment award.
Minnie Dlamini, who has been a prominent figure in the entertainment industry for over a decade, expressed deep gratitude for the recognition. In a heartfelt post, she thanked Forbes Africa for acknowledging her contributions and also extended her appreciation to her family, friends, and fans who have supported her throughout her journey. Read More
