adminTHE supply of Liquefied Petroleum (LP) gas in the country is set to stabilise by the end of the month after a South African company that was the major supplier resumed operations following a maintenance shutdown.
Supply from the South Africa’s major LPG suppliers Afrox went down after the company closed down its major refining plant early this month while constrained supply affected some refineries that were still in operation.
However, Zimbabwe Energy Regulatory Authority acting chief executive officer Mr Misheck Siyakatshana said the company had re-opened its plant and locals could start importing from the company.
Traders were now importing from those selling at Mozambique’s ports who were ordering from other countries resulting in the spike of prices from below $2 per kilogramme to around $3,50.
He said LP gas that was being imported from Mozambique was attracting a five percent duty charged while no duty is charged on gas originating from a Sadc country.
“There may also be price fluctuations from traders offering LPG for sale at the Mozambican Ports. The differences in cost however do not justify some of the prices that have been reported recently.
Zera is currently working on a framework with the Ministry of Energy and Power Development to control the retail price of LPG,” he said.
Gas has become popular among Zimbabwean energy users in the face of erratic electricity supplies.
The supply of gas in the country has remained erratic over the past weeks.
Value Gas sales manager Mr Abel Murira said retailers have had to increase their prices because they were not getting it from their normal suppliers in South Africa.
“Strauss Logistics has been transporting gas for us from Mauritius and we have been getting it through Mozambique. The period of transportation is about a week and it is generally more expensive,” said Mr Murira.
Value gas increased its prices to $2,80/kg from $1,75.
An official from BOC gas who spoke on condition of anonymity on Thursday said the company had gone for a week without supply although they were expecting some over the weekend from their usual supplier and another tank from Mozambique.
Speaking on the price increases, the official said it was natural that when demand is high and supply low, prices tended to go up.
“There is a high demand for gas and suppliers have had to go through extra costs to get it. When gas is procured from outside Sadc region there is a duty as well hence all these things affect normal prices,” he said.
Bongani Ndlovu