BERA reviews fuel pricing formula
Friday, April 12, 2024 | 1220 Views |
Under review: The formula used to calculate fuel prices is being adjusted PIC: MORERI SEJAKGOMO
Known more commonly as the “slate,” the formula is a calculation of the costs involved in supplying and distributing various forms of fuel within the country. Every month, BERA looks at the movements of the various factors in the slate, to gauge whether pump prices are “under-recovering” or “over-recovering”. Both terms refer to whether pump prices are above or below the costs involved in bringing and distributing the fuel throughout the country, which determines pump prices increases or reductions.
BERA caretaker CEO, Grace Tabengwa, said the review of the slate would be aimed at achieving cost reflectivity.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...