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Zvamaida Murwira, Senior Reporter
The Zimbabwe Energy Regulatory Authority (Zera) has imposed a nominal levy on both petrol and diesel to fund its regulatory and compliance enforcement role.
The levy, which has been pegged at US$0,005 will ensure access to renewable energy, particularly in rural areas.
The announcement by Zera is contained in a Statutory Instrument of a Government Gazette published last Friday and has been effected in terms of the Petroleum Act.
According to the regulations, which were done with the approval of Energy and Power Development Minister, Edgar Moyo, the levy will be collectable upon importation of the products.
“The National Oil Company of Zimbabwe and the Zimbabwe Revenue Authority shall be authorised to collect the Petroleum Levy subject to terms and conditions agreed upon with Zera,” reads the notice.
“The collected funds shall be used by Zera for strengthening the compliance of the petroleum sub sector to regulations and standards, training and development, procuring tools, research and development.
“The excess funds shall be used for enhancing access to energy in rural areas, procurement and construction of properties and the funding of activities to promote renewable energy uptake.”
Market watchers said the new levy would unlikely result in an increase in the price of fuel as it was nominal.
Channelling of financial resources to rural communities as envisaged by the regulations, dovetails with the Second Republic’s rural industrialisation and modernisation agenda.
Of late, several rural communities have had solar energy installed as the Government moves towards clean energy, especially at a time fossil fuels have been flagged for contributing towards damaging the environment.
Online Reporter