Govt to roll out local currency fuel supply outlet

Govt to roll out local currency fuel supply outlet

THE Zimbabwe Energy Regulatory Authority (ZERA) has revealed plans to roll out a pilot programme to supply fuel in local currency in a manner that sustains the fuel supply chain.

Fuel prices have been going up on the globe and Zimbabwe as a price taker due to importation has also seen price increases which have pushed out supplies in local currency.

Zimbabwe Energy Regulatory Authority (ZERA) Chief Executive officer Mr Eddington Mazambani who was speaking on the ZBC Current Affairs Programme Face The Nation this Tuesday revealed modalities are now in place for retailers to charge in local currency.

“We recall that we used to sell purely in RTGS which resulted in RTGS but we later witnessed long queues looking at the value chain we realised we buy fuel in local currency. But looking at the sentiments of the people we do stakeholder engagement, we are in the process of rolling out outlets to sell fuel in RTGS starting with 57, this is a directive from the government, we understand the arbitrage opportunity with coming with this two-tier pricing so we have started as a pilot and their look at large scale. At the same time, we look at not affecting the supply chain,” said Eddington Mazambani ZERA Chief Executive Officer.

He also indicated that companies independently securing foreign currency will be allowed to sell in the currency of their choice.

“We will not interfere with companies that come with free funds. They will not be forced to sell in a currency they did not purchase to sustain the supply chain,” he said.

He also indicated that sustainable fuel blending will continue due to its socio-economic benefit to the country with the blending remaining between 0 and 20% according to the required standards.