Fuel rationing on the cards

GOVERNMENT is considering rationing fuel as a measure to curb fuel shortages following a 60% increase in demand for the liquid at a time the country is hard pressed for foreign currency to pay for fuel imports.

BY TATIRA ZWINOIRA

Zimbabwe Energy Regulatory Authority (Zera) acting chief executive Eddington Mazambani told Parliament’s Committee on Energy and Power Development that demand for fuel was significantly higher.

Demand for petrol is estimated to have increased 69% to an average of 2,06 million litres a day compared to 1,21 million litres in 2017. Diesel on the other hand had surged by an estimated 54,1% to 3,21 million litres from 2,08 million litres in the previous year.

“We might have to consider as a country that we do not have the product (fuel) so maybe let us ration the product. It is not a desirable solution, but with the situation we have at the moment to try and have a demand side management we might actually have to do a paper to recommend rationing unless the situation improves,” he said
“At the beginning of the year, we were averaging on a daily basis about two million litres (diesel) per day which now has moved to above four million litres per day as of October. For petrol, we started in January at 1,6 million litres per day. It has since moved to about three million litres a day. So, there is definitely an increase in the consumption of fuel probably occasioned by the vehicular traffic on the roads”.

Mazambani said fuel operators had stocks being bonded but would need forex for them to be availed and distributed to the market.

Imports for diesel are projected to reach 1,1 billion litres by year end and 751,3 million litres for petrol, an estimated 53,67% and 68,81% increase respectively.

Reserve Bank of Zimbabwe governor John Mangudya, who also appeared before the same committee said there would be enough fuel for the holiday season and beyond.

“We have put in place a number of fuel financial facilities to ensure that Zimbabwe’s supply of fuel is sustainable and stable. We have put in place long term financial facilities which we have put in place for the major oil companies to use, the suppliers to use so that they can supply fuel in Zimbabwe,” he said.

Mangudya said there were six fuel financial facilities in place totalling $197,2 million. These include a $40 million facility for 14 million litres a week with Trafigura and a $32,2 million facility for Total from the United Kingdom-based investment firm Gemcorp to supply between seven and 10 million litres a week running until November 2020.

Others include a $25 million facility to supply seven million litres of fuel a week which is continuous for Engen, a $40 million facility to supply seven million litres a week for Zuva from United Kingdom-based Glencore, a $40 million running facility to also supply seven million litres a week from the Independent Petroleum Group headquartered in Kuwait, and a $15 million to $20 million facility that will supply 3,5 million to five million litres a week for the government parastatal, Petrotrade.

22 Comments

  1. Invictus Energy should speed up the setting up of the Muzarabani oil extraction project. Where’s Minister Chitando to give us updates?

    1. you are a mad human being thinking there is oil down there

    2. Invictus will have to get in line: Chinhoyi-Maningwa Hills and Jatropha first.

  2. Liberalize the funding and procurement of fuel. Let fuel operators source their own funding and procure on their own. Yes some will sell in USD. Let the country redollarise. You cannot suppress the inevitable.

  3. Exactly right Bido, totally agree!

  4. When a member of this govt talks about “long term solution”, I think to myself how long is the term. ….. 1 hour perhaps or 1 day? There is clear lack of management, control, communication or sense of purpose in this govt….again evidence abounds.

    1. Well said.’—–and beyond’ is 1 hour beyond the festive seaon

  5. Stupid politicians selling fuel in bond notes less than 50cents a litre but they are buying the same product in US dollars who do they want to please. SELL THE FUEL AT CURRENT US tione kuti inoshaika here, they know they will be in trouble if they do that. For example diesel should cost 5.36bond or swipe per litre not kuda kufadza vanhu nenhando

    1. @Leon ndiwe wataura iwe. Fuel is now to cheap that it makes sense to drive than board a combi as long as you can afford to stand in a queue get the product.

  6. Well said.’—–and beyond’ is 1 hour beyond the festive seaon

  7. dealing with the symptoms drop the 1:1 rate our Fuel is the cheapest in the region in real terms. its not sustenable

  8. I thought the bond note is at par with the USD, can’t they use their bond to import fuel. hahahahaha

  9. Do we earn USD at our work places NO Lets not just write rubbish here. Fuel should just be pumped into cars not drums and jerry canes. it is surprising to note that there is NO FUEL SHORTAGE in the black market Why? Stop selling fuel to makorokoza (zera) gvt should deploy police solders once a service station gets a delivery. Petrol attendants are making a killing

  10. Can some one remind Mangundya Christmas is just three days away. Miracles only happen in the christian kingdom. This Xmas will go as the worst ever because of the New Dispensation.

  11. 700,000 extra cars on the road…. why are there so many cars.

  12. A shortage leads to an increased demand to avoid running out. This is simple. If I know I can re-fuel at any time I dont need to fill all my cars with fuel always. I just carry the minimum. In our current situation one chooses to consider even digging an underground fuel tank to keep stocks. Just buy enough fuel and demand declines to normal levels.

    In a shortage learn from Smith. You let people register at nearest service stations and get limited litres per month using authentic vehicle registration books and well insured vehicles. That will be simple. You will only let the kombis which are properly registered to get daily allocations.

  13. No need to have these shortages, people are buying fuel using cash so why is it now a shortage when we are spending on the precious liquid. Corruption and mismanagement remember queen B is sabortaging big time allow NOCZIM and other BP Shell to bring fuel like before please. This thing of saying black empowerment will lead us nowhere.

  14. tichamama hedu…

    1. hatisati, legitimacy iya yomhangara, confidence ine mabasa

  15. lets have
    private players who can bring their fuel and sell it in usa

  16. I think you are a bit dull. Dont you know liberalising the market will drive the price up…and rationing will begin automaticallt thereby solving the eyesore congestion currently on the roads. Dont tell me prices will go up because they have already gone up!

  17. This is the same stupid government who went to town about having sourced enough fuel for the country!!!!! Zanu pf will never cease to amaze!!!

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