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companies to blend petrol with ethanol.
Minister Mangoma this week said those involved in the Green Fuel project in Chisumbanje were free to export their product to avoid losses.
Stakeholders in the fuel industry said they could not understand the minister’s position, considering that blending of fuel with ethanol was in line with international trends.
They cited countries such as South Africa and Brazil that were working on legislation for the mandatory blending of petrol with ethanol at varying percentages.
“We cannot have legislation for individuals, because that would set a bad precedent,” the minister said.
A spokesperson of Green Fuel yesterday hit back at Minister Mangoma saying the project was national and was meant to benefit the whole country and not just a few individuals.
It was also aimed at creating 5 000 jobs, increasing energy security and reducing fuel prices.
“The downstream industrial impact of a project of this nature clearly translates to benefits going beyond one person,” said the spokesman. “We believe that if the minister were to visit the project he would see the benefits it has brought to the community and potential to benefit the country.
“The option to export remains open to us and it’s a route we are exploring. Ethanol is in demand in South Africa and other regional countries due to the high fuel prices.
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‘In South Africa, mandatory blending is already imminent on the backdrop of high fuel prices currently as high as US$1,60 for petrol.”
Local fuel prices currently range between US$1,41 to US$1,45 for petrol with selling for US$1,35 a litre.
The spokesman said since Green Fuel submitted an application for mandatory blending in November last year, no formal response from the regulatory authorities had been received.
“We have had numerous meetings with the Ministry of Energy and Power Development, the Zimbabwe Energy Regulatory Authority, and the special Cabinet committee during which no written correspondence was made to the effect that Zimbabwean ethanol could be exported. We are surprised to read the minister’s views via the Press.”
The spokesman added that the downstream impact of a project of this nature clearly translates to benefits beyond one person.
The spokesperson added that “the morally disturbing fact” was that exporting ethanol would be at a cost to the Zimbabwean motorists.
This would mean that the country would be re-importing ethanol blends from South Africa, as unleaded petrol, therefore buying back a locally produced product at a premium price.
The spokesperson said in applying for mandatory blending, Green Fuel was not pursuing legislation to benefit one person as advocated by Minister Mangoma.
She said that behind every investment programme was the overall objective to operate sustainably, while impacting on the human development factor through job creation and corporate social responsibility.
Mandatory blending would be a way of lowering fuel prices, increasing the fiscal liquidity through domestication of cash instead of exporting revenues to other countries.
It would also help decrease Zimbabwe’s dependence on imported fuel and cushion the local economy from external fuel price manipulation.
Online Reporter