Fuel importers fear confiscation

rrency continued low as fuel companies doubt the sincerity of the government.
Given that the issue of price continues unresolved, with the official price for a litre of fuel continuing at $60,000, the fuel companies fear their product may be confiscated if they import and sell it at prices that reflect input costs.
A litre of fuel normally tracks the parallel market exchange rate of the Zimbabwe dollar against the US dollar.
Pending a possible review of the exchange rates in the monetary policy statement, which has indefinitely been postponed, the Central Bank is in the meantime implementing sectoral devaluations (multiple exchange rates) through adjusting support prices for important export commodities such as gold and tobacco. For instance, on 25 July 2007, the Reserve Bank hiked the gold support price by 757% to $3 million and was back-dated to the 1st of July 2007 for those miners who had documented evidence that they had sold their gold through the official channel.
On 31 July 2007, the support price for gold deliveries made during the month of June 2007 was increased by 185,7% to $1 million. On the same day, the Reserve Bank again announced a 37,5% increase in the tobacco support price from $40 000 per kilogram from Z$55 000 per kilogram. – Business reporter