News / Local
Forex constraints impact on fuel supply in local currency
11 Mar 2022 at 05:41hrs | Views
FOREIGN currency constraints are hindering the supply of fuel sold in local currency, the Zimbabwe Energy Regulatory Authority (Zera) has said.
This week, Zera announced an increase in the price of fuel, pegged in both local and foreign currency. Under the latest pricing structure, the pump price for diesel is now $218,01 per litre or US$1,68 per litre while petrol is pegged at $216,78 per litre or US$1,67.
In Zimbabwe, what is in abundance is fuel being sold in forex and as such many motorists that are not earning forex are finding it difficult to buy fuel.
Most fuel stations in Bulawayo are selling petrol and diesel in forex but liquid gas mostly used for cooking can be bought in both local and foreign currency.
Motorists in the city say they have been struggling to buy fuel because they have no access to forex.
"I have to buy forex from the black market so that I can fuel my car. I bought US$40 using a $10 000 transfer as their rate is $250. This isn't sustainable," said a motorist, who was fuelling at a service station in the city centre.
Some motorists said they had found some service stations around the city which were selling fuel at almost three-fold the official price in local currency.
They said the fuel at a few of these service stations cost as much as $600 per litre for petrol and using the black market rate this translates to US$2,40 per litre and at official rate it costs US$4,72 per litre.
"It is interesting that Zera released the fuel price increases in both local and forex but no garage in the city is selling in local currency except the few that are charging ridiculous prices.
Most of us earn local currency and it is difficult to understand why most garages are selling fuel in forex, which we don't have and can't have access to," said Mr Steven Forbes who was at another service station.
Zera CEO Mr Edington Mazambani said despite the foreign currency scarcity making it hard to import fuel, there are measures that Government has put in place for those who sell it in local currency.
"The Government has put in place measures to ensure those who sell local currency fuel are allocated the fuel. These will be monitored through the National Fuel Management System, which all service stations under this scheme should have installed," said Mr Mazambani.
He insisted that there are service stations selling fuel in local currency which was disputed by most of the motorists who spoke to the Chronicle.
"Under the pilot project, the Government has been selling ZWL fuel mostly through fuel sites owned by Government. The programme is being expanded to include some private companies to enable them to access the funds.
It is expected that once the programme gathers momentum, more sites will be taken on board," said Mr Mazambani.
This week, Zera announced an increase in the price of fuel, pegged in both local and foreign currency. Under the latest pricing structure, the pump price for diesel is now $218,01 per litre or US$1,68 per litre while petrol is pegged at $216,78 per litre or US$1,67.
In Zimbabwe, what is in abundance is fuel being sold in forex and as such many motorists that are not earning forex are finding it difficult to buy fuel.
Most fuel stations in Bulawayo are selling petrol and diesel in forex but liquid gas mostly used for cooking can be bought in both local and foreign currency.
Motorists in the city say they have been struggling to buy fuel because they have no access to forex.
"I have to buy forex from the black market so that I can fuel my car. I bought US$40 using a $10 000 transfer as their rate is $250. This isn't sustainable," said a motorist, who was fuelling at a service station in the city centre.
Some motorists said they had found some service stations around the city which were selling fuel at almost three-fold the official price in local currency.
They said the fuel at a few of these service stations cost as much as $600 per litre for petrol and using the black market rate this translates to US$2,40 per litre and at official rate it costs US$4,72 per litre.
"It is interesting that Zera released the fuel price increases in both local and forex but no garage in the city is selling in local currency except the few that are charging ridiculous prices.
Most of us earn local currency and it is difficult to understand why most garages are selling fuel in forex, which we don't have and can't have access to," said Mr Steven Forbes who was at another service station.
Zera CEO Mr Edington Mazambani said despite the foreign currency scarcity making it hard to import fuel, there are measures that Government has put in place for those who sell it in local currency.
"The Government has put in place measures to ensure those who sell local currency fuel are allocated the fuel. These will be monitored through the National Fuel Management System, which all service stations under this scheme should have installed," said Mr Mazambani.
He insisted that there are service stations selling fuel in local currency which was disputed by most of the motorists who spoke to the Chronicle.
"Under the pilot project, the Government has been selling ZWL fuel mostly through fuel sites owned by Government. The programme is being expanded to include some private companies to enable them to access the funds.
It is expected that once the programme gathers momentum, more sites will be taken on board," said Mr Mazambani.
Source - The Chronicle
