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Petroleum operating licenses go up in Zimbabwe

by Staff reporter
29 Dec 2023 at 02:00hrs | Views
THE Zimbabwe Energy Regulatory Authority (Zera) has slightly reviewed upwards petroleum operating licences for 2024 and has urged existing and new fuel operators to renew and submit applications.

The regulatory body said existing licences expire on Sunday.

In a notice, Zera said all operators are reminded that according to Section 29 of the Petroleum Act, it is illegal to procure, sell or produce any petroleum product without a licence issued by the Authority and the necessary legal steps will be taken on those that do not comply.

"Zimbabwe Energy Regulatory Authority (Zera) hereby notifies fuel operators whose 2023 operating licences expire on 31 December 2023 to start submitting applications for the 2024 licences.

"New entrants should also start submitting their applications if they intend to operate in 2024," reads part of the notice.

According to Zera, wholesale licence has been pegged at US$10 580 up from the current US$9 200.

Retail licence has been set at US$ 575 (urban) and US$230 for rural up from US$500 and US$200 respectively.

Production licence which is mandatory is pegged at US$23 000, production licence (General) will cost US$ 23  000 and production licence (Blending) is set at US$5 750.

LPG Retail licence and wholesale licences have been set at US$115 and US$9 200 respectively.

As part of requirements for a wholesale licence, a wholesaler of fuel should be a holder of an ordinary fuel wholesale licence and must be a Zimbabwean registered company and produce proof in the form of Certificate of Incorporation, CR14, CR6 and CR2 forms.

Added to that, all wholesalers shall have suitable capacity as approved by Zera and provide proof of project funding.

Recently, Zera revealed that close to 1 000 applications for petroleum products retail licences have been received this year, which is almost equal the total number of fuel stations currently licensed by the energy sector regulator.

It said the huge appetite for fuel station licences was being driven by growing demand for petrol and diesel, as well as Government incentives that are promoting investment in the sector.

The country requires at least three million and four million litres of petrol and diesel per day, respectively.

Demand, however, continues to rise on account of an economy growing at an accelerated pace, driven by expansion of the mining, agriculture and infrastructure development sectors.

It is also believed development of new urban settlements and the opening up of new roads have also created more strategic locations for the establishment of service stations.

Source - The Chronicle