Ethanol fuel producers, Green Fuel are targeting to make Zimbabwe’s fuel the cheapest in the region, if the blend ratio is increased from the current 10% to 20%.
Green Fuel, took the market by storm this month, selling the commodity at $1,36 per litre, which is lower than current prices ranging between $1,42 to $1,44 per litre.
Lilian Muungani, the Chisumbanje based company’s spokesperson, said the market reaction to the product had been overwhelming and efforts were underway to ensure the distribution was nationwide.
“We are open to supply everyone and we urge distributors outside Harare to approach us for commercial agreements.
“However, as of now, we note with caution that there is some resistance from some local distributors who are keen to ensure the survival of their parents, the huge multinational oil companies. ’
Muungani added research had shown a blend ratio of up to 20% had no technical effects on the vehicles and doubling the ration will see consumer saving up to 16 cents per litre.
“This is likely to bring the price of blend further down to $1, 25 and for the first time in the history of this country fuel may be priced lower than in South Africa,” she said.
As fuel prices in Zimbabwe tumble, the opposite is happening in Malawi.
The country’s Energy Regulatory Authority this week announced a 30% hike in fuel prices.
This, the board indicated, was meant to cover the rising costs of fuel importation. The South African Energy Department recently announced a 23% hike in fuel prices shocking the petrol consumer with R10, 77 cents per litre ($$1,35).