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Tendai Mugabe Senior Reporter
Government has increased the mandatory blending level of unleaded petrol with ethanol from E10 to E15 with immediate effect in a move expected to trigger a reduction in fuel prices which were now ranging between US$1,45 and US$1,50 per litre.
Energy and Power Development Minister Dzikamai Mavhaire, in a notice published in the Government Gazette yesterday, said licensed operators were expected to comply with the order.
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“It is hereby notified, in terms of section 4 of the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) (Amendment) Regulations, 2014 in the Government Gazette dated 9th May 2014 that the Minister of Energy and Power Development approves the current level of mandatory blending to E15,” reads the notice.
“The blending levels of ethanol and unleaded petrol could not be maintained at E20 because of floods in the sugarcane fields hindering harvesting to adequate supply of ethanol for blending in the market.
“The consequence of this approval is that all licensed operators shall, from the date of publication, be mandated to sell unleaded petrol blended at E15.”
In an interview yesterday, Minister Mavhaire said E15 could have been implemented in May, but was stopped because of floods that affected sugarcane harvesting in Chisumbanje.
He said increased blending levels came with a number of benefits to the State.
Minister Mavhaire said Government would cut the fuel import bill by at least US$12 million monthly by implementing E15.
“Yes the increase in blending levels is going to benefit motorists by way of reduced price of fuel,” Minister Mavhaire said.
“The more the ethanol that we use the more the benefits that we get as a country.
“We are now going to save more foreign currency and we hope with this new blending level we will save something in the region of US$10 million and US$12 million.”
Minister Mavhaire said Green Fuel would contribute four megawatts of electricity to the national grid following increased blending levels.
As Government, Minister Mavhaire said, they were happy with production levels at Green Fuel’s Chisumbanje Ethanol Plant.
He said they were confident that the company would sustain the new blending levels.
“We have studied their (Green Fuels) crop and we are satisfied that they are able to supply enough stocks for blending,” he said.
Arda board chairman Mr Basil Nyabadza whose organisation is in partnership with Green Fuel, said they were happy with the development.
He described the increase in blending levels as a positive development to the country.
“We are grateful to the Government for honouring its promise that it will increase blending levels gradually,” he said.
“We can increase further and there are enough stocks to surpass the E20 levels.”
Mr Nyabadza said there were benefits that came with increased mandatory blending levels such as electricity generation.
“We are not only going to produce electricity for the plant but we will also contribute to the national grid.
“The more the increase in blending levels, the more electricity that we will generate and contribute to the national grid.”
Blending of fuel beyond E10 levels is being challenged in the courts by a Harare man Thabani Mpofu who is suing the minister, Zimbabwe Energy Regulatory Authority and Green Fuels.
Mpofu filed a constitutional application challenging Green Fuels’ “monopoly and blending ratios” to levels beyond E10.
He argued that compulsory blending effectively bans unleaded fuel in the country.
Mpofu further contends that Green Fuels’ monopoly and blending ratios do not guarantee fair competition and are not in the interest of motorists.
He is of the view that mandatory blending infringes on people’s rights as enshrined in the Bill of Rights in the Constitution of Zimbabwe.
In response, Minister Mavhaire said Government acted in the interest of the public when it came up with mandatory blending of petrol.
He says from the 1970s to early 90s there was mandatory blending and no complaints were raised.
Online Reporter