News / National
No fuel price hikes, says Jorum Gumbo
05 Apr 2019 at 12:30hrs | Views
Government has no intention of adjusting current fuel prices, a Cabinet Minister has said, dismissing claims on social media that fuel prices will go up next week.
Energy and Power Development Minister Jorum Gumbo said Government had no intentions of increasing the prices of fuel.
"Our people should know that there is no consideration of increasing the prices at the moment," he said.
"The only adjustments you will see are those determined by the FOB prices at Beira."
He said pumping of fuel from Beira was going on smoothly and people should not panic as enough stocks were in the country.
"Our people should also not rely on social media," Minister Gumbo said.
"Even after the cyclone, we resumed pumping on March 24 and fuel is coming into the country, enough stocks are there in bond.
He added, "We are negotiating with big companies like Trafigura and IPG with whom we have big facilities to understand our situation and give us a leeway as we mobilise funds to pay them.
"We have delayed and failed to meet our commitment because of the challenges we experienced recently."
He said the current hitches in the fuel supply were being caused by shortages of foreign currency.
"We have engaged the Minister of Finance Professor Mthuli Ncube to facilitate for the importation of fuel by mining companies to ease the demand for foreign currency on the Reserve Bank.
"Cabinet has already taken a decision on that, the biggest problem is not about fuel to be precise, but provision of foreign currency.
"We have facilities in place but those handling the finances have foreign currency challenges which were compounded by the cyclone disaster which happened recently," Minister Gumbo said.
Minister Gumbo said a lot of fuel has been imported to help in Chimanimani.
"Resources and fuel has also been going to Chimanimani, those handling finances are working on the allocation of finances, but they are a bit constrained, but things will normalise.
"I engaged the RBZ and they have promised to pay for supplies to improve, we are also doing winter cropping and a lot of power is also needed and paid for to cater for that and this means the monetary authorities have to balance all this," said Minister Gumbo.
Energy and Power Development Minister Jorum Gumbo said Government had no intentions of increasing the prices of fuel.
"Our people should know that there is no consideration of increasing the prices at the moment," he said.
"The only adjustments you will see are those determined by the FOB prices at Beira."
He said pumping of fuel from Beira was going on smoothly and people should not panic as enough stocks were in the country.
"Our people should also not rely on social media," Minister Gumbo said.
"Even after the cyclone, we resumed pumping on March 24 and fuel is coming into the country, enough stocks are there in bond.
He added, "We are negotiating with big companies like Trafigura and IPG with whom we have big facilities to understand our situation and give us a leeway as we mobilise funds to pay them.
"We have delayed and failed to meet our commitment because of the challenges we experienced recently."
He said the current hitches in the fuel supply were being caused by shortages of foreign currency.
"We have engaged the Minister of Finance Professor Mthuli Ncube to facilitate for the importation of fuel by mining companies to ease the demand for foreign currency on the Reserve Bank.
"Cabinet has already taken a decision on that, the biggest problem is not about fuel to be precise, but provision of foreign currency.
"We have facilities in place but those handling the finances have foreign currency challenges which were compounded by the cyclone disaster which happened recently," Minister Gumbo said.
Minister Gumbo said a lot of fuel has been imported to help in Chimanimani.
"Resources and fuel has also been going to Chimanimani, those handling finances are working on the allocation of finances, but they are a bit constrained, but things will normalise.
"I engaged the RBZ and they have promised to pay for supplies to improve, we are also doing winter cropping and a lot of power is also needed and paid for to cater for that and this means the monetary authorities have to balance all this," said Minister Gumbo.
Source - hmetro
