Nqobile Bhebhe Senior Reporter
FUEL companies are increasingly selling fuel in Zimbabwe Gold (ZiG) through wholesale transactions to generate local currency for statutory payments, while Government is considering proposals to sustain fuel subsidies to ease production costs.
Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr Innocent Matshe said some fuel companies had started selling fuel in ZiG but were opting for bulk transactions rather than supplying it through service station pumps.
Speaking during the 2027 Pre-Budget Seminar in Bulawayo, Dr Matshe said the companies needed local currency to meet their quarterly payment obligations.
“You will realize is that there are some fuel companies today that are selling fuel in ZIG. Unfortunately they are only selling it in bulk.
“Why, you may ask? It’s because these companies, they do not want to put this fuel in the pump, but they also need this ZIG for their QPD payments.
“If they are receiving, you know, payments in US dollars and they are required to pay QPD in ZIG, they need to find a way of generating that ZIG,” said Dr Matshe.
“So what they have opted to do in the interim is to sell it in wholesale in ZIG.”
The transactions highlight how fuel companies are seeking to generate local currency to meet statutory obligations in an economy where the United States dollar remains widely used.
Making fuel available in ZiG through retail outlets could also expand payment options for consumers and businesses, although the current transactions remain largely confined to wholesale sales.
Meanwhile, Budget Finance Committee chairperson Lincoln Dhliwayo said a proposal had been made for Government to continue subsidising fuel to keep prices below US$2 per litre.
“There was a proposal to ensure that the government continue to subsidize our fuel so that it is made below two dollars so that at least the cost of production and also the cost to consumers is somehow reduced,” he said.
Fuel prices directly affect operating costs across agriculture, mining, manufacturing, transport and distribution, making affordability a key consideration in efforts to support productive sectors.
For farmers, fuel costs influence expenditure on land preparation, irrigation and the transportation of agricultural produce. In mining and manufacturing, fuel is essential for operating machinery, moving output and distributing goods.
Transport and logistics operators also depend heavily on fuel, with price changes affecting freight charges and the cost of moving goods to markets.
Maintaining fuel subsidies could therefore help ease pressure on businesses and consumers, although the proposal’s implementation would depend on Government’s budgetary decisions and the resources available.
As Government prepares the 2027 National Budget, the proposals highlight the challenge of promoting local currency transactions while ensuring that businesses have access to affordable energy to sustain production and economic activity.
