Fuel price hike raises tension in Zimbabwe

The danger of civil unrest in Zimbabwe increased yesterday when President Robert Mugabe's government put up fuel prices by 72 per cent ­ the sharpest rise for 20 years.

Amid persistent rumours that Zimbabwe will be hit by maize and wheat shortages in the coming months, the petrol price was increased by 76 per cent with diesel ­ used in industry and farming ­ going up by 67 per cent. The price of paraffin, used by most of the population for cooking and keeping warm, went up by 69 per cent. In October, there were riots in Harare, the capital, after a 15 per cent fuel price rise put up the cost of basic foodstuffs.

The sudden move shocked even the staunchest critics of the ruling Zimbabwe African National Union ­ Patriotic Front. Eddie Cross, of the opposition Movement For Democratic Change, said: "The implications for the poor are enormous."

The price rise by the National Oil Company, through which all fuel is imported, was imposed because a flourishing black market ­ which sprung up last year to counter shortages ­ appears to have sucked up all the hard currency. The company needs dollars to import fuel into the landlocked southern African country.