News / National
Zimbabwe saves $90 million from blending
30 Mar 2014 at 11:30hrs | Views
Zimbabwe Energy Regulatory Authority (Zera) chief executive officer, Gloria Magombo says blending is not a new thing as it has happened before.
She said blending came as a result of the increased uptake of fuel since 2009. Fuel imports nearly doubled to 523 536 306 litres last year from 288 344 423 in 2009.
She said as a result of the 10% blending, the country saved $90 million.
But, former Energy and Power Development minister, Elton Mangoma says that the country had not saved any money as there were other costs arising from the use of blended fuel.
"Those are false savings because when my vehicle develops a problem, I will have to import spare parts," Mangoma said.
A representative of the Motor Industry Association of Zimbabwe, Simplisio Shamba said government should approach the matter with caution, advising them to take one step at a time.
"Government should issue a Statutory Instrument on the types of vehicles to be imported. When they come, we can go to E20," he said.
Magombo said in the long-term, government had to put in place deliberate policies on the types of vehicles to import. This means that vehicle dealers have to import cars that conform to local fuels.
"It is important that in future we come up with incentives which allow the importation of vehicles which conform to local fuel," Magombo said. "This is where we should be going as a country."
The ethanol plant in Chisumbanje has in the past courted controversy over its valuation. Promoters have said it is valued at $600 million.
Mangoma however, said the plant was nowhere near the $600 million touted. "Where there is $600 million, you can see it. You don't need to be told," he said.
According to the national energy policy, a minimum of E20 blending should be in place by 2015.
The increase in the blending ratio comes despite concerns by car assemblers that their vehicles won't take anything above E10.
Last year, Nissan Zimbabwe said the use of the ethanol blend above 10% would render all its products unwarrantable as they were designed to take a maximum 10% of ethanol blended gasoline only.
Concern has also been raised as to why government was shutting out other players.
Magombo said any company interested in producing ethanol for the local market should be in a joint venture with government.
She said blending came as a result of the increased uptake of fuel since 2009. Fuel imports nearly doubled to 523 536 306 litres last year from 288 344 423 in 2009.
She said as a result of the 10% blending, the country saved $90 million.
But, former Energy and Power Development minister, Elton Mangoma says that the country had not saved any money as there were other costs arising from the use of blended fuel.
"Those are false savings because when my vehicle develops a problem, I will have to import spare parts," Mangoma said.
A representative of the Motor Industry Association of Zimbabwe, Simplisio Shamba said government should approach the matter with caution, advising them to take one step at a time.
"Government should issue a Statutory Instrument on the types of vehicles to be imported. When they come, we can go to E20," he said.
Magombo said in the long-term, government had to put in place deliberate policies on the types of vehicles to import. This means that vehicle dealers have to import cars that conform to local fuels.
"It is important that in future we come up with incentives which allow the importation of vehicles which conform to local fuel," Magombo said. "This is where we should be going as a country."
The ethanol plant in Chisumbanje has in the past courted controversy over its valuation. Promoters have said it is valued at $600 million.
Mangoma however, said the plant was nowhere near the $600 million touted. "Where there is $600 million, you can see it. You don't need to be told," he said.
According to the national energy policy, a minimum of E20 blending should be in place by 2015.
The increase in the blending ratio comes despite concerns by car assemblers that their vehicles won't take anything above E10.
Last year, Nissan Zimbabwe said the use of the ethanol blend above 10% would render all its products unwarrantable as they were designed to take a maximum 10% of ethanol blended gasoline only.
Concern has also been raised as to why government was shutting out other players.
Magombo said any company interested in producing ethanol for the local market should be in a joint venture with government.
Source - thestandard
