Zimbabwe to save $2 million on fuel imports

THE country is expected to save at least $2 million every month in fuel imports following the gazetting of a 5% mandatory blending for petrol, a senior official with the Zimbabwe Energy Council (ZEC) has said.

Report by Mernat Mafirakurewa

Government last week gazetted Statutory Instrument 17 of 2013, paving way for the production of E5 by licensed ethanol blenders countrywide.

The introduction of blended fuel comes at a time when petrol prices have been on a steady increase costing between $1,51 and $1,59 per litre.

ZEC executive director Panganayi Sithole commended the government and in particular the Inter-Ministerial Committee on Chisumbanje Project on coming up with the statutory instrument.

“While Zimbabwe Energy Council would have been comfortable with a 10% mandatory blending, we believe that this is a strong starting point and will fully support government in this regard,” said Sithole.

“What is now very key and strategic is the immediate implementation of this statutory instrument so that the plant will start operating. It is very key that all stakeholders co-operate to enable the resumption of operations at Chisumbanje.

“Zimbabwe imports 30 to 40 million litres of petrol every month and this decision by Government will save the country between 1,5 million and 2,5 million litres which will translate into $2 million dollars every month. This is very great savings for a country that is hit by a high import bill.”

Sithole said the energy ministry would take a leading and decisive role in the implementation of the Statutory Instrument, adding that the recent developments should hopefully pave way for the re-engagement of the over 2 000 employees that had been laid off.

He said the benefit of the mandatory blending would trickle down to the motorists on the road, who will cumulatively enjoy significant savings.

“We call the Government to authorise the introduction of 20% and 85% blends, albeit on an optional basis,” said Sithole.

ZEC is the local representative of World Energy Council in Zimbabwe, a grouping of experts from around the world that discusses ways of building energy resources.

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  1. Blending is okay but we are and we have always been worried about the pricing structure of petroleum products in Zimbabwe.Dealers out there are making a killing and this puts pressure on the ordinary person who is at the bottom of the petrol chain.

  2. Tambaoga Shirichena

    The good efforts of the Inter-Ministerial Committee headed by Deputy Prime, Professor Aurther Mutambara has been transformed into a binding Statutory Instrument number 17 of 2013. The people of Chisumbanje especially the vulnerable employees and their families have found solace and reprieve. Foreign currencys savings and employment creation are some of the strategic benefits of this noble gazetting outcome. It is my humble hope that the ethanol project will not falter like the earlier ethanol project of the 1980s which tapped Sugar cane from Triangle and Hippo Valley estates. Personally I have not heard about any negative findings about E5 blend so far. I suggest that Statutory control measures be urgently implimented to curb likely dubious Dealers who may form cartels and bid the prices of E5 up thereby defeating the essence of this homegrown product.

  3. We are tired of these articles.We as greenfuel employees are suffering because government is dragging its feet on policy that stimulates growth in this country.You also think 2 million dollars worth of monthy ethanol production will be sufficient to run the plant,you think this is some sort of magaba plant.No wonder why Billy isnt so interested because with the tongaart hulliet pays 3 or 4 times more than this hogwash you are talking about.Clowns running this nation for sure.Brazil today prides itself as being ethanol sustainable and someone brings the idea home and there goes the clowns dancing kumbaya making noise worst than vuvuzelaz with nothing better to offer.Please zimbabwe press spare us with your frustrating misleading articles

    1. So why was it built if it makes financial nonsense nhai Dick head?

  4. kikiki ndizvo

  5. @john dick Savings and Running Expenditure are two different things. Period!!!

    1. maybe comrade if you look at the article again and link it to my comment you will understand my plant we cant run that plant for just 2 million dollars production because expenditure outways income.The savings being referred to are on the foreign exchange of the nation in terms imports and exports.

  6. @ comrade chihondo if you do your math its the same thing I am not talking of things I dont know period.

  7. Zimbabwe is now moving I can imagine Billy apihwa monopoly haaa ma one Chaivo. Surely speaking ARDA had got raw deal from the on coz of vultures which eaten some shares. We want to know what The board chair of ARDA and Mbona Acting general Manager will do coz vakanga vadya naBilly. Do yu know that up to now the contract with ARDA only goes up to cane cut in the field and its only 8% of the revenue that of cut cane

  8. The deal may not be perfect, but definitely local production of fuel is the way to go. I wish Electricity Generation would be opened up to private sector investment as well. The Minister of Energy must come out more often to give the nation the direction he is pursuing regards improved power generation and provide specific target dates.

  9. Why make it mandatory. Free market forces should take precedent. Why should the public pay extra or risk their engines to satisfy a corrupt project.

  10. Why make it mandatory. Free market forces should take precedent. Why should the public pay extra or risk their engines to satisfy a corrupt project.

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