Published: 19 August 2013

The Zimbabwe Energy Regulatory Authority (ZERA) has given fuel dealers two months to comply with 5% mandatory blending following the licensing of the $600 million Chisumbanje ethanol plant under Green Fuel.

The decision has been undertaken to ensure compliance within the market following the introduction of mandatory blending by the government which will see the blending of 5% ethanol and 95% unleaded petrol as proclaimed in the statutory instrument 17 of 2013.

In a statement, ZERA CEO, Engineer Gloria Magombo said the quality specification of e5 fuel conforms to the Standards Association of Zimbabwe (SAZ) requirements and is based on internationally recognised quality standards of the fuel.

Engineer Magombo said the wholesalers and retailers have up to 60 days to clear their current stock and make necessary preparations after which all license holders in the petroleum sector will be expected to comply.

According to ZERA, the move is expected to reduce the retail price of petrol by three cents per litre.

The blending of fuel is likely to reduce the import bill of the commodity annually by at least $60 million.

Analyst say there is need to ensure a gradual increase in the blending percentages as the 5 percent mandatory blending has insignificant reduction on the price of the commodity.

Significant price reductions will only be realised as the blending percentages increase.
- zbc

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