Zimbabwe urged to leverage on blended fuel project

significant threats to world fuel supplies, which require the country to make the most of the Green Fuel ethanol project in Chisumbanje.
“The threat of war between Iran and Israel has added fuel supply disruption concerns, and has been feeding into the oil price.

“As a long-term strategy, Zimbabwe needs to leverage on its green fuel project — apart from being a reliable source of fuel, the pump price of blended fuel is around US$1,40 a litre, which is at least 5 cents lower than straight gasoline,” he                said.
The Green Fuel project has the capacity to produce in excess of 60 million litres of anhydrous ethanol a year, which makes it the largest ethanol production plant on the continent.

“When fully operational, the project is expected to produce enough ethanol to significantly reduce Zimbabwe’s fuel import bill,” said Mr Wadi.
Trade figures show that Zimbabwe imports fuel worth around US$1,2 billion annually, a figure that represents almost half of the Government’s annual income.
Global oil prices have been on a constantly upward trend, largely driven by concerns over Middle East supply disruptions. Tensions have been high between major oil producer Iran and the West.

Earlier this month, fuel prices in Zimbabwe followed the prevailing international trend and moved upwards.
Local fuel prices rose between US 5 cents and US 10 cents on the back of a surge on the global market.
Petrol currently costs between US$1,48 and US$1,65 a litre depending on location, while diesel is now selling at between US$1,32 and US$1,45 a litre.

Prior to the latest round of increases, petrol was selling at between US$1,40 and US$1,45 a litre, while diesel cost from US$1,25 to US$1,33 a litre.
Observers note that the trend of rising fuel prices could have a ripple effect on the local economy as prices of other commodities has a tendency to follow suit as both firms and individuals try to cushion themselves from the high fuel prices.

This normally drives up the rate of inflation.
Leveraging on the Green Fuel project will ensure that the country is significantly less prone to the shocks in the global fuel market.

The company behind the project has, however, struggled to convince Government to introduce mandatory blending of petrol and ethanol, despite receiving support from business and the motor industry.