October 1, 2019

Zimbabwe liberalises fuel sector

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PRESIDENT Emmerson Mnangagwa says companies that have free funds can now import their own fuel.

He was officially opening the second session of the ninth Parliament on Tuesday.

“Companies with foreign currency are now permitted to procure their own fuel through registered oil companies,” said President Mnangagwa.

He said the stability in the supply of fuel, that has prevailed in the country over the past few weeks can be attributed to good pricing models.

“The country has seen some stability in the fuel sector on the back of the introduction of cost-reflective pricing adjustments, coupled with the fuel procurement financing facilities structured by Government.”

However, he said although the Ministry of Energy and Power Development and the regulatory authority, ZERA have worked hard to ensure constant supply, there are still some loopholes that need to be addressed.

“To curb malpractices in the fuel industry, Government will soon roll out an electronic National Fuel Monitoring System. For the long term, a comprehensive National Integrated Energy Resource Plan is being developed,” he said.

Still on the energy sector, the President said cost reflective pricing should continue to be implemented to improve electricity supply.

“Due to the impact of climate change, our economy is facing severe electricity supply challenges, owing to reduced hydro-power generation capacity at Kariba Dam. To address this state of affairs, we have now restored the cost reflective electricity tariff structure and increased power imports to provide the much needed short term relief,” the President said.

He added that ZESA will be restructured, to enhance efficiency.

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