Zera shuts down 73 unlicensed fuel stations

The Zimbabwe Energy Regulatory Authority (ZERA) has taken decisive action against unlicensed fuel stations, shutting down more than 70 facilities suspected of selling petroleum products from unauthorized suppliers and failing to comply with regulatory standards. In addition, over 130 liquefied petroleum gas (LPG) retail sites were closed for operating without the necessary licenses in a crackdown that spanned from January to July 2024.

ZERA imposed fines ranging from US$200 to US$700 on unlicensed fuel retailers, while those dealing in LPG faced penalties between US$30 and US$600. In a recent interview with The Sunday Mail, ZERA CEO Edington Mazambani highlighted the scale of the operation, stating, "Seventy-three liquid and 136 LPG retail sites have been closed and prosecuted for operating without the requisite petroleum retail licenses from January to July 2024."

Mazambani acknowledged that the current fines may not serve as a strong enough deterrent for repeat offenders. "ZERA feels the fines are low and is working with relevant Government agencies to make them stiffer, ensuring that operators do not repeat the same offense," he said. The regulatory body is also developing a system for spot fines to expedite enforcement and impose harsher penalties.

ZERA employs various methods to identify unlicensed fuel stations, including surprise inspections, market surveillance, and collaboration with law enforcement agencies. "Such sites not only violate the law but often procure fuel from unauthorized suppliers. They also fail to meet safety and infrastructure standards, potentially selling off-specification fuel that poses a danger to vehicle owners," Mazambani warned.

To enhance regulatory compliance, ZERA collaborates closely with the Ministry of Energy and Power Development, the Attorney-General's Office, and local authorities. These partnerships facilitate inspections, enforcement, and intelligence sharing, enabling the prosecution of offenders, the imposition of penalties, and the confiscation of illegal equipment and fuel.

The number of licensed fuel stations in Zimbabwe has surged in recent years, jumping from 299 in 2012 to 1,048 licensed operators by 2023. This rapid increase highlights the need for stringent oversight and enforcement to maintain a secure and regulated energy sector.

Mazambani reiterated ZERA's commitment to ensuring compliance and safety in the industry. "Our aim is to create a secure and regulated energy sector in Zimbabwe, and we will continue to work with various government agencies to achieve this goal."