Govt to probe shady deals in fuel sector

Nqobile Tshili, Chronicle Reporter 

GOVERNMENT has directed the Zimbabwe Energy Regulatory Authority (Zera) to investigate the rot in the fuel sector in southern parts of the country where some service stations are accused of illegally selling fuel in foreign currency, among other issues.

The southern region covers Bulawayo, Midlands, Masvingo, Matabeleland North and South.

Energy and Power Development Minister Advocate Fortune Chasi yesterday met small to medium players in the fuel sector from Matabeleland, after they sought audience with him.

During the meeting, smaller service stations expressed concern over bullying by dominant companies who allegedly use dirty tactics to push them out of business.

The meeting was held at a time when there are concerns over shady deals in the fuel sector.

Some players are arbitrarily selling petrol and diesel in foreign currency without being licenced to do so and no action is being taken against them.

The media did not attend the meeting as it was exclusively between the minister and players in the sector.

In a Press briefing after the meeting, Minister Chasi said the meeting made him understand challenges affecting the fuel sector in the region which may not be the case in other areas. 

“There are peculiarities for stakeholders in this part of the country. The first one is that there is importation of fuel, some of it is not done properly, not regular. 

“I needed to understand what it is that had led to peculiarity of their practice. I was concerned about issues about smuggling of fuel and also sale of fuel in foreign currency in circumstances where that has not been permitted by the State,” said Minister Chasi.

He said he instructed Zera to investigate cases where big companies and said to be pushing the smaller ones out of the business.

Minister Chasi said his Ministry is moving towards addressing all the irregularities in the fuel sector.

 “They told me that they are arbitrarily removed from the service stations and there were very clear insinuations of corruption by representatives of bigger companies in this part of the country who push out operators in order to take over service stations. This is a matter that I have asked Zera to look into and I expect that they will give a comprehensive report on that and Government will act,” said Minister Chasi.

 He said the meeting also gave him an opportunity to share views with players as Government is remodelling the fuel sector.

“Government is engaged at the moment in the process of restructuring the fuel industry and consultations are key. We need to specifically know what is of concern to players and what is it that interests them. We need them to input                                                                                                              in the policy making process,” he said. — @nqotshili

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