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Zimbabwe’s government opens up fuel importation

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Zimbabwe’s government recently opened up the importation of fuel. The new development gives big companies with free funds, the opportunity to import fuel for their own consumption.

According to its Minister for information, Publicity and broadcasting services, Monica Mutsvangwa, “it is meant to augment supply gaps in the market”.

Also, Cabinet members resolved the ongoing partial privatization of ZUPCO, which is in sync with public enterprise reforms espoused in Government’s Transitional Stabilization Programme (TSP) which is to be expedited to boost recapitalization of the company.

Zimbabwe United Passenger Company, ZUPCO is a parastatal company in Zimbabwe, which operates for urban and long-distance bus routes. The Minister said “Cabinet has given a green light to large companies such as those in the mining sector to use their funds to import fuel for their use.”

Read Zimbabwe’s Petrotrade to build eight new fuel stations

The country in 2015 through its Statutory Instrument (SI) 171 amended that members of the public are allowed to import up to 2,000 litres of fuel per month for personal use but the legal instrument was repealed two years later through SI 122 of 2017, which stipulated that only companies licensed in terms of Section 29 of the Petroleum Act were allowed to import fuel.

Meanwhile, the Zimbabwean market is faced with challenges like intermittent stock-outs which are negatively affecting individual consumers and businesses. Energy and Power Development Minister Joram Gumbo said individuals will not be allowed to import fuel on their own.

He stated that “At the moment no individual is allowed to do that. Regarding the issue of diesel, it is true that last week there was shortage of diesel and His Excellency allowed us to use strategic reserves to bring in diesel to mitigate the situation as we were allowing oil companies to do their usual ordering of fuel into the market. We hope that come end of week, things will have stabilized for both products.”

Source petroleum africa
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