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Desperate Zimbabweans turn to Botswana for cheaper fuel
10 hrs ago |
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Smuggling syndicates have intensified operations along the Zimbabwe - Botswana border, turning bush paths near the Plumtree Border Post into a hub for illicit fuel trade as traders exploit widening price differences between the two countries.
The surge comes as fuel prices in Zimbabwe continue to climb, pushing motorists toward a growing black market where fuel sourced from Botswana is sold at significantly lower prices.
Recent price adjustments by the Zimbabwe Energy Regulatory Authority saw petrol in Zimbabwe rise to US$2.17 per litre and diesel to US$2.05. Across the border, however, fuel prices remain much lower, averaging around US$1.13 per litre for petrol and US$1.19 for diesel.
The disparity, largely driven by differences in taxation policies, has created a lucrative opportunity for informal traders, commonly referred to as "Abafana," who transport fuel across the border through illegal crossing points.
Individuals involved in the trade say the operation involves carrying fuel in containers through bush routes, often making multiple trips to move larger volumes.
Mthokozisi Khumalo, one of those involved, said they are hired by motorists seeking cheaper fuel.
"We go through the bush while carrying containers… motorists usually pay us about 50 pula each," he said.
The near one-dollar price difference per litre has made the trade highly profitable, with fuel later sold within Zimbabwe, often outside formal distribution channels.
The situation is already affecting the transport sector, with operators raising fares in response to rising fuel costs. Some operators admit relying on smuggled fuel to stay in business.
Transport operator Mbekezeli Ndlovu said the informal networks have become dependable, even financing fuel purchases upfront to ensure supply continuity.
He called on authorities to review fuel taxation policies, arguing that high prices are placing pressure on both operators and commuters.
"The more the fuel prices go up, as kombi operators, we will also increase fares… it's not making sense that Zimbabwe is selling fuel at a higher pump price in the region," he said.
National police spokesperson Paul Nyathi said authorities would need to investigate the matter before issuing a formal position.
Economist Eddie Cross noted that fuel smuggling has long been a challenge, with much of the illicit product reportedly ending up at independent fuel outlets where it is sold at full market price.
"The main impact is that Treasury does not get the taxes and levies worth about 57 cents a litre," he said.
Meanwhile, Energy and Power Development secretary Gloria Magombo said she was not aware of the current developments.
The illegal trade is believed to be costing the government millions in lost tax revenue, funds that could otherwise support public services and infrastructure.
Despite the dangers associated with transporting fuel through informal routes, communities near the border continue to rely on door-to-door suppliers for cheaper fuel.
Analysts say the trade is likely to persist as long as the price gap remains wide and enforcement challenges continue, highlighting deeper structural issues in pricing, taxation, and regional energy dynamics.
The surge comes as fuel prices in Zimbabwe continue to climb, pushing motorists toward a growing black market where fuel sourced from Botswana is sold at significantly lower prices.
Recent price adjustments by the Zimbabwe Energy Regulatory Authority saw petrol in Zimbabwe rise to US$2.17 per litre and diesel to US$2.05. Across the border, however, fuel prices remain much lower, averaging around US$1.13 per litre for petrol and US$1.19 for diesel.
The disparity, largely driven by differences in taxation policies, has created a lucrative opportunity for informal traders, commonly referred to as "Abafana," who transport fuel across the border through illegal crossing points.
Individuals involved in the trade say the operation involves carrying fuel in containers through bush routes, often making multiple trips to move larger volumes.
Mthokozisi Khumalo, one of those involved, said they are hired by motorists seeking cheaper fuel.
"We go through the bush while carrying containers… motorists usually pay us about 50 pula each," he said.
The near one-dollar price difference per litre has made the trade highly profitable, with fuel later sold within Zimbabwe, often outside formal distribution channels.
The situation is already affecting the transport sector, with operators raising fares in response to rising fuel costs. Some operators admit relying on smuggled fuel to stay in business.
He called on authorities to review fuel taxation policies, arguing that high prices are placing pressure on both operators and commuters.
"The more the fuel prices go up, as kombi operators, we will also increase fares… it's not making sense that Zimbabwe is selling fuel at a higher pump price in the region," he said.
National police spokesperson Paul Nyathi said authorities would need to investigate the matter before issuing a formal position.
Economist Eddie Cross noted that fuel smuggling has long been a challenge, with much of the illicit product reportedly ending up at independent fuel outlets where it is sold at full market price.
"The main impact is that Treasury does not get the taxes and levies worth about 57 cents a litre," he said.
Meanwhile, Energy and Power Development secretary Gloria Magombo said she was not aware of the current developments.
The illegal trade is believed to be costing the government millions in lost tax revenue, funds that could otherwise support public services and infrastructure.
Despite the dangers associated with transporting fuel through informal routes, communities near the border continue to rely on door-to-door suppliers for cheaper fuel.
Analysts say the trade is likely to persist as long as the price gap remains wide and enforcement challenges continue, highlighting deeper structural issues in pricing, taxation, and regional energy dynamics.
Source - newsday
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