Zuva Petroleum is targeting a 30% market share as the company seeks to make use of its increased fleet and capacity to supply more fuel, an executive has said.
BY TATIRA ZWINOIRA
Last week, Zuva introduced a fuel card and coupon on to the market with the card being value-based, while the coupon is volume-based.
Speaking at the launch of the fuel card and coupon, Zuva chief executive officer Bethwell Gumbo said the company was on an expansion programme which involves innovating and consolidating gains already made.
“Now we are on an expansion programme and will continue to innovate and we want to consolidate what we have already put in place. We think that we should operate over 30% of this market share.
We have the size and in terms of asset base we have the biggest, and because of that, we still have got the advantage,” Gumbo said.
“Remember, we have moved across from BP and Shell to Zuva and there was a time when we were sort of dormant. At that time we had almost about 8% of the market until about 2014. So from 2014 to date, we have more than doubled.”
Zuva is currently sitting on a market share of about 20% with the increase attributed to a rebranding exercise.
Zimbabwe’s daily consumption for fuel is four million litres per day. Zuva’s logistics department now has a capacity of one million litres and its fuel depots can hold up to 60 million litres.
Across the country, Zuva has 70 retail outlets and an oil blending plant with a capacity to blend
12 million litres annually. The company has made a significant investment to build on its assets.
Reserve Bank governor John Mangudya said in 2015, Zimbabwe’s imports of petroleum averaged $100 million a month.
“Fuel accounts for 23% of the nation’s import bill. In the year 2015, Zimbabwe’s imports of petroleum products averaged $100 million a month making fuel the largest traded commodity both in terms of volume and value,” Mangudya said.
“I urge you [Zuva] to continuously pass on the benefits of the low prices of crude oil and contribute to lowering the costs of doing business in the Zimbabwean economy.”
The cost of a barrel of crude oil on the international market has significantly declined and currently sits at $36,72 as of yesterday.
However, the change has yet to be significantly felt on the Zimbabwean market which has been slow to reduce prices that are currently the highest in the region.
The average regional cost of fuel is $0,92 for petrol and $0,85 for diesel, while the average cost globally is $0,97 and $0,83 for petrol and diesel respectively.
Local prices now average $1,22 and $1 for petrol and diesel respectively.