Fuel smugglers undercut local pumps

Fuel dealers in Manicaland are exploiting widening price disparities by smuggling cheaper petrol and diesel from neighbouring Mozambique, fuelling a growing underground market that is undercutting licensed operators.

Investigations reveal that the illicit trade is being driven by a significant price gap, with diesel retailing for about US$1.09 per litre in Mozambique compared to US$2.11 in Zimbabwe, while petrol costs roughly US$1.12 across the border against US$2.23 locally.

At an exchange rate of 73 Meticais to the US dollar, this translates to approximately 79.89 Meticais for diesel and 82 Meticais for petrol, making cross-border smuggling highly lucrative.

The province's 700km porous border, stretching from Nyanga to Chipinge, has long been vulnerable to illicit activities. However, sources say the scale of fuel smuggling has surged sharply following recent increases in Zimbabwe's pump prices.

Smugglers are reportedly transporting fuel into the country and selling it at significantly reduced prices, with five-litre containers going for between US$6.50 and US$8 - well below the official price of around US$12 for the same quantity.

The illegal trade is sustained by a network of runners and dealers positioned near key border entry points, feeding the black market and eroding formal fuel sales.

Authorities have made several arrests in recent weeks, including a major bust involving 26,000 litres of diesel in the Burma Valley. Smaller-scale arrests involving individual operators have also been recorded.

Sources indicate that some of the fuel is siphoned from large tanker trucks, with drivers allegedly collaborating with small-scale dealers to divert supplies for resale along routes such as the Mutare - Harare Highway.

Smuggling syndicates are also said to be using sophisticated tactics, including bribery at roadblocks. In some cases, advance vehicles are reportedly dispatched to negotiate passage with corrupt officials, ensuring safe transit for trucks carrying illicit fuel.

While fuel smuggling has historically occurred in the region, officials say the current spike is unprecedented.

Manicaland provincial Ministry of Industry and Commerce head, Kupukani Masunungure, confirmed that authorities are intensifying efforts to curb the illegal trade, though challenges remain.

"There are anti-smuggling efforts to thwart the syndicates smuggling fuel through the border posts of the province. But as you might be aware, our borderline stretches 700km and is quite porous," he said.

Masunungure noted that parts of the border fall under the jurisdiction of the Zimbabwe National Army and the Joint Operations Command, limiting the taskforce's reach.

He also linked the surge in smuggling to broader global dynamics, including rising fuel prices driven by geopolitical tensions in the Middle East, which have increased demand for cheaper alternatives in the region.

"In the last few weeks, ZIMRA and other security agencies have actually upped the game to try and curb the smuggling of all goods from neighbouring countries, and a number of arrests have been made," he said.

The Provincial Anti-Smuggling Taskforce - comprising multiple government ministries, security agencies and local authorities - has been mandated to tackle the vice following a Cabinet directive issued in October 2024.

Despite these efforts, the scale and coordination of the smuggling networks continue to pose a significant challenge to authorities and the formal fuel sector.