Zimbabwe fuel consumption rises 650%?

Zimbabwe fuel consumption rises 650%?
Published: 12 February 2019 (139 Views)
Daily consumption of both diesel and petrol in Zimbabwe rose by 342 percent and 650 percent respectively between April and October 2018, putting Government under huge pressure to provide adequate foreign currency to pay for the commodity.

Petrol consumption vaulted from 1 million litres per day to about 7,6 million litres per day, reflecting a 650 percent increase while consumption of diesel rose from 1,9 million litres per day to about 7,6 million litres daily, a weighty 342 percent jump.

As a net fuel importer, Zimbabwe needs foreign currency to pay for the precious commodity, but low export receipts mean the country does not have adequate hard currency for the imports, especially after consumption sky-rocketed. Energy and Power Development Minister Dr Joram Gumbo, told journalists at a briefing in Harare yesterday that while Zimbabwe had enough stocks at the Mabvuku and Msasa depots, it did not have adequate foreign currency to pay for the fuel.

The minister said the fuel is kept at Msasa and Mabvuku for easy access, but it is bonded, and if the fuel is in the source market, it must be paid for first before its release. He said the Reserve Bank of Zimbabwe currently allocates about US$20 million per week towards paying for the fuel imports — accorded the highest priority among many other competing needs - which is being consumed in the country.

Other critical needs competing with fuel for allocations by the central bank of the scarce foreign currency are health, manufacturing and mining sectors. The energy and power development minister said if there was enough foreign currency in the country, there would not be any queues for fuel to talk about in Zimbabwe.

The minister said his updates about fuel (stocks) in the country, which indicated there was enough fuel stocks in bonded facilities in Mabvuku and Msasa, had been misconstrued to mean that the fuel should always be available at service stations.

"The fuel that comes into the country is in bond; is kept at Msasa and Mabvuku in bond. In order for each company that supplies your service station to get that fuel and deliver it to a particular service station they must pay for it in forex and that forex they get it from RBZ.

"What that means is that the oil companies in the country have to (first) pay for that fuel through RTGS then the fuel is released to them and a certificate is released to that company in order for them to access that fuel at Msasa and Mabvuku.

"The scramble for getting that fuel in forex is what we all know, it is the scramble for the limited resources, the scramble for the limited foreign currency we do not have in the country and the RBZ has to allocate," the minister said.

He said the companies that have to get the fuel have to queue for the foreign currency. "Before payment they will be no releases for fuel, a certificate has to be released or provided to a company that has to get the fuel and at the end of the day that fuel is transported to a service station," Minister Gumbo said.

Minister Gumbo said his ministry was responsible for facilitating fuel imports into the country by negotiating with suppliers. It is brought in via the Feruka Oil pipeline through Beira, Mozambique. Some of it goes to Zambia, DRC, Malawi and other countries.

"What happens is that fuel can only be accessed after payment of forex by our local companies," he said.

"Also there are facilities we negotiate as a ministry, and that is our role."

Currently, Zimbabwe is getting its weekly supplies from a number of suppliers including Trafigura (20 million litres), Independent Petroleum Group (IPG) (12 million litres), Total (7-10 million litres), ENGEN (7 million litres), and Straus (7 million litres). Cumulatively, the fuel firms supply an average of 45 million litres into the market weekly.

Government also negotiates fuel supply facilities over 90 to 120 days, but the arrangement at times gets encumbered by the shortage of forex. Amid fuel shortages in Zimbabwe, Minister Gumbo said Government had witnessed a case in Zambia, which went to court after some people were arrested after smuggling fuel in 15 tankers with the intention to resell the fuel in that country.

- the herald

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Dorothy Masuka (83) dies

by Staff reporter | 23 February 2019 | 54 Views

Activist released after month in prison

by Staff reporter | 23 February 2019 | 43 Views

Ginimbi tax evasion investigations complete

by Staff reporter | 23 February 2019 | 39 Views

Parties withdraw from Mnangagwa's National Dialogue?

by Staff reporter | 23 February 2019 | 54 Views

Callistus Ndlovu buried

by Staff reporter | 23 February 2019 | 43 Views

Grace Mugabe sister's fraud charges to be dropped

by Staff reporter | 23 February 2019 | 42 Views

Callistus Ndlovu's hero status angers Zapu

by Staff reporter | 23 February 2019 | 43 Views

Chiwenga's charter plane a specialist hospital in the sky

by ZimLive | 23 February 2019 | 50 Views

'Baba Jukwa' bailed $100

by newzimbabwe | 23 February 2019 | 43 Views

Mnangagwa warns militant MDC supporters

by newzimbabwe | 23 February 2019 | 48 Views

Zimbabwe lost $2 billion on 1:1 forex exchange rate

by Staff reporter | 22 February 2019 | 199 Views

MDC National Council Resolutions

by MDC | 22 February 2019 | 165 Views

'Propaganda' college for Chamisa's MDC

by Ndou Paul | 22 February 2019 | 176 Views

Mnagagwa is a habitual liar

by Don Chigumba | 22 February 2019 | 182 Views

Chiwenga aborts flight to Zimbabwe

by newzimbawe | 22 February 2019 | 213 Views

Grace Mugabe sister's fraud trial hits a snag?

by newzimbabwe | 22 February 2019 | 137 Views

Callistus Ndlovu's body arrives in Harare

by Staff reporter | 22 February 2019 | 120 Views

Baby mama threatens to bewitch ex's wife

by Staff reporter | 22 February 2019 | 123 Views

Dating scam exposed

by Staff reporter | 22 February 2019 | 162 Views

Cholera vaccine campaign begins in Harare

by Staff reporter | 22 February 2019 | 107 Views

American starlet trialing with Bosso

by Staff reporter | 22 February 2019 | 98 Views

Zimbabwe approves 37 mbanje investors

by Staff reporter | 22 February 2019 | 135 Views

'Technology changing face of epidemic'

by Staff reporter | 22 February 2019 | 99 Views

Bosso zero in on three for captaincy

by Staff reporter | 22 February 2019 | 99 Views

Two stabbed, axed in gold rush

by Staff reporter | 22 February 2019 | 115 Views

Bulawayo takes deliberate affirmative action policy

by Staff reporter | 22 February 2019 | 109 Views

Woman arrested for obscene message to lover's wife

by Staff reporter | 22 February 2019 | 114 Views

MDC Alliance members run away with ballot papers

by Staff reporter | 22 February 2019 | 115 Views

Zimbabwe/South Africa officials to meet ahead of Ramaphosa visit

by Staff reporter | 22 February 2019 | 78 Views

Mnangagwa courts Chinese

by Staff reporter | 22 February 2019 | 46 Views

Caps United avert player strike over unpaid dues

by Staff reporter | 22 February 2019 | 48 Views

Fake news rocks Zimbabwe military

by Staff reporter | 22 February 2019 | 63 Views

Ginimbi to 'tour' Australia

by Staff reporter | 22 February 2019 | 57 Views

'Chamisa, Mnangagwa power-sharing not on the agenda'

by Staff reporter | 22 February 2019 | 109 Views

Chamisa cries as his political career ends

by Dr Masimba Mavaza | 22 February 2019 | 173 Views

Abusive Zanu-PF councillor sets wife alight

by Staff reporter | 22 February 2019 | 54 Views