Chronicle Editor
Nqobile Tshili, Chronicle Reporter
GOVERNMENT has said more than 80 percent of fuel sold in local currency is channelled to critical national projects such as construction and road rehabilitation works and its availability depends on foreign currency allocations.
In December, the Zimbabwe Energy Regulatory Authority (Zera) identified 57 fuel stations which were supposed to provide local currency fuel to motorists.
Motorists last year pleaded with Government to provide more fuel in local currency but it has not been accessible to the public.
Fuel prices have continued to increase and a litre of petrol costs up to US$1,71 while diesel can be obtained for US$1,60. A majority of the fuel stations sell it in foreign currency.
Energy and Power Development Permanent Secretary Engineer Gloria Magombo said while local currency fuel is not on the market, Government is disbursing it for implementation of national projects.
She said this last Friday during the Zimbabwe International Trade Fair where Zera was celebrating a decade of existence.
“But I also want to highlight that given the fact that we have looked at the statistics of the provision of the ZWL fuel, there is a lot of it that has gone to more for productive use the likes of Zesa, Zupco and for me that subsidy is a much bigger subsidy than just to a single motorist in terms of what Government overall objective is. Some of it is used for
Government programmes like dam construction, road rehabilitation and Government operations. So, the fuel is there, it is coming through but only 17 percent is going to retail sites for sale and the other almost 80 percent is then going for Government programmes and agriculture, road construction, Zupco which is a much bigger subsidy,” she said.
Eng Magombo said there is a need for Zera to strengthen the fuel management system so that when the petroleum is allocated to fuel stations for resale it is not abused.
“The issue that has happened is that we need that system to be made universal on all service stations as a long-term project so that there is that ability to look at what is happening in all the places because the system for distribution of funds for ZWL was expanded to include other companies and they are interchangeable bringing in ZWL and sometimes they have their USD fuel. If that system works in all the service stations, it makes it easier to have that oversight,” said Eng Magombo.
Speaking on the same issue, Energy and Power Development Minister Zhemu Soda said poor access to foreign currency was constraining the availability of local currency fuel.
“For ZWL fuel it starts with the availability of the funds that are supposed to be availed by the Reserve Bank of Zimbabwe. All Zera does is to ensure that there is efficiency in the distribution of available fuel that will be on the ZWL.
You heard from the statistics, of the fuel that is provided through the ZWL facility Zera is able to prioritise on national projects like construction of roads, construction of dams, public transport through Zupco that is what Zera is ensuring in ensuring the prioritisation,” said Minister Soda.
He said Government remains committed to making the fuel accessible to most motorists.
“It is our intention with resources permitting all service stations must provide fuel in our local currency. But I think our major concern comes in through the provision of foreign currency for the procurement of the fuel,” he said.
Zera chief executive Mr Eddington Mazambani said working with operators in the sector they had identified stations that were supposed to supply the subsidised fuel. — @nqotshili
Online Reporter