Zimbabwe is facing a shortage of fresh cooking oil after the sharp rise in cooking oil prices in international markets and foreign exchange shortages causing profitability problems for the sector.
Despite the increase in cooking oil on the international market, the Reserve Bank of Zimbabwe (RBZ) is still giving the same amount to oil traders as of 2020.
Some oil companies are now forced to source from the exchange market with the parallel market where the premiums are higher.
This week, the price of cooking oil has risen to around ZWL$1,115 per 2-litre bottle, from around ZWL$920 two weeks ago.
Meanwhile, the Reserve Bank of Zimbabwe (RBZ) this week hiked interest rates to a record high in a bid to halt the currency’s slide and rein in rising inflation amid war in Ukraine which is exacerbating pressure on prices food and fuel.
The Monetary Policy Committee raised the interest rate from 60% to 80%, Governor John Mangudya said in a statement.
It is the highest level since the South African nation’s MPC pegged the rate at 70% in September 2019.
