Govt assures public on fuel prices

Govt assures public on fuel prices
Published: 30 May 2018
The Ministry of Energy and Power Development yesterday assured members of the public that Zimbabwe Energy Regulatory Authority (Zera) will monitor the market and ensure compliance to regulated prices amid rumours of price hikes.

In a statement yesterday, Minister Simon Khaya Moyo said there was no need for the public to hoard fuel as the Reserve Bank of Zimbabwe has increased and sustained allocations towards fuel procurement above the average level of $20 million a week, from $10 million.

"The recent challenges were as a result of increases in international prices coupled with an increase in the local demand for fuel. Government is taking a multi-pronged approach towards finding a lasting solution," said Minister Moyo.

He said there is also third party stock to ensure continued security of fuel supply in the country.

"As at May 28, 2018, third party stocks in bonded storage are adequate for the next 18 days supply for diesel and 19 days for petrol and all this belongs to international fuel traders," he said.

"Consumers of fuel must not hoard fuel and are encouraged to buy volumes which are adequate for their immediate needs. Zera will continue to monitor the market for fuel adequacy and price movements and advise stakeholders accordingly."

He said oil companies should continue their deliveries in good time and quickly alert the Government of any likely fuel stock outs.

"Consumers are also encouraged to use fuel sparingly and efficiently to save scarce foreign currency. The Press and social media must desist from peddling negative publicity intended to cause unnecessary panic and despondency in the country," added Minister Moyo.

The Government, he said, is also engaging traders who have been bringing fuel in the country to ensure there are always enough stocks.

"Ethanol production is expected to resume by month end May 2018 resulting in the resumption of petrol blending thus reducing the import bill. The Environmental Management Agency has waived restrictions of fuel delivery in the urban centres during the night to allow continuous deliveries of fuel," added Minister Moyo.

The Reserve Bank of Zimbabwe Governor Dr John Mangudya on Monday said the central bank has doubled foreign currency allocation to fuel suppliers to ensure consistent supply of fuel.

He said the fuel shortage that the country experienced last week were a result of rising oil prices on the world market and structural challenges in the economy that have caused shortages of foreign currency.

"We have discussed with the Ministry of Energy and Power Development and Zimbabwe Energy Regulatory Authority that we now need to allocate $20 million on a weekly basis between using direct allocations, letters of credit and also facilities.

"We do believe that the country is facing challenges which have to do with supply and demand of foreign currency. The supply of foreign currency (low) is due to the pressures this economy is going through," Dr Mangudya said.
- chronicle
Tags: Fuel,


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