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Former Consumer Council of Zimbabwe (CCZ) chairperson Phillip Bvumbe has warned that consumers will continue to be affected by price increases due to hikes in fuel prices triggered by conflict between Russia and Ukraine. 
Experts expect the decline in fuel output to continue until the war in Eastern Europe ends.
The cost of living reached $75 000 at the end of January, while the Zimbabwe Statistics Agency (ZIMSTAT) reported that the total consumption poverty line was $9 114, translating to a cost of living of $54 684 for a family of six per month.
However, as reported by the central bank last month, the average income is below $50 000 per month.
Experts say apart from high rates of unemployment, even those formally employed continue to earn below the poverty line. Bvumbe told Standardbusiness:
<blockquote>
If you look at the CCZ breadbasket for the end of January it stands $75 000, up from December 2021 which was $72 000.
Now, when you look at the majority of minimum wages, they are below $50 000 and yet the family basket now stands at $75 000. So, that nature would incline that most of these people are living below the consumer council basket, which means they cannot afford to access basic commodities, which are in the basket for a family of six.
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The problem worsened when the Zimbabwe Energy Regulatory Authority last week raised the price of fuel per litre by 10% to US$1.67 and US$1.68 for petrol and diesel, respectively, within one week.
Bvumbe said workers in the top-notch sectors including the banking sector were also earning below the PDL (poverty datum line).
His remarks echoed reports first made by ZIMSTAT which in a recent report found that 80% of the employed persons from both formal and informal sectors were earning a monthly income of $20 000 in October 2021, against a cost of living of $42 708, for a family of six.
More: <a href="https://thestandard.newsday.co.zw/2022/03/13/brace-for-hard-times-ex-ccz-boss-warns/">The Standard</a>

Pindula News

Former CCZ Chairperson Warns Of Impending Hard Times

The country is yet again, for the umpteenth time battling a fuel crisis despite the government’s efforts to liberalise the market and allow some service stations to sell fuel in foreign currency, the Chronicle reports.
The publication observed long queues in Bulawayo and noted ZPSC and Public Service Commission and other government vehicles in various queues around the City of Kings.
Motorists that spoke to the publication shared various stories including stories that they have been looking for fuel for days and couldn’t find it, and they were resorting to buying fuel from the black market because of the fuel shortages.
When contacted for comment Deputy Energy Minister Magna Mudyiwa said the shortages were due to forex shortages:
<blockquote>The fuel shortages are not unique to Bulawayo only but are a nationwide phenomenon. This is due to forex shortages we are experiencing. The national cake is too small; a lot of sectors need forex, and while fuel is one if the prioritised sectors, of late Government has been diverting the larger chunk of resources towards the Covid-19 fight.
So resultantly, some sectors may suffer. To access fuel at Msasa, Government must have paid for that bonded fuel. So, the public must expect such challenges as the cake is so small and must be distributed among different sectors to keep the economy functional.</blockquote>
Meanwhile, motorists have urged the government to introduce dual fuel pricing as most service stations are selling fuel in us dollars only.
More: <a href="https://www.chronicle.co.zw/fresh-fuel-shortages-hit-country/">Chronicle </a>

Fuel Queues Resurface For The Umpteenth Time

The government has permitted fuel service stations to operate around the clock in a bid to ease the shortage of the commodity in the country.
Under the current lockdown regulations, most businesses can only operate between 8 am to 4.30 pm.
But in a statement on Monday night, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the national taskforce on COVID-19 agreed that service stations must be allowed to operate 24 hours a day. She said in a statement:
<blockquote>Following reports on erratic hours of operation by some fuel retail outlets, the Attorney General has clarified that fuel retail outlets are classified as an essential service under the lockdown regulations.
As such, retail outlets are allowed to conduct trade during their normal hours of operation.</blockquote>
Their hours of operation are not confined to 8 am to 4.30 pm which applies to some other exempted categories of business.
Mutsvangwa revealed that the country has started the use of dexamethasone after the United Kingdom found it had the life-saving potential for critically-ill coronavirus patients.
<h4>More: <a href="https://dailynews.co.zw/filling-stations-to-operate-24-hours/" rel="noopener noreferrer" target="_blank">Daily News</a></h4>

Fuel Service Stations To Operate Around The Clock

The government of Zimbabwe has slashed customs and exercise duty on fuel imported using free funds by 50 percent for diesel and 44 percent for both leaded and unleaded petrol.
The announcement was done through Statutory Instrument 64 of 2020 also referred to as Customs and Exercise (Tariff Amendment) Notice 2020 number 14.
Duty for petrol is now US$0, 25 per litre down from US$0, 45 per litre while diesel will be levied US$0, 20 per litre down from US$0, 40. Reads the SI in part:
<blockquote>… companies with free funds shall be allowed to import the goods designated. . . with the listed commodity (fuel) being imported entirely for use in their production process, and pay for the duty in foreign currency.
This facility shall also be open to designated fuel stations authorised to sell the listed commodity codes (fuel) in foreign currency.</blockquote>
The development is premised at reducing the cost of importing fuel which is scarce in the country. The government used to give fuel dealers the money to import the commodity but it did not end well as some companies reportedly abused the facility.
Reduced fuel prices will likely result in reduced prices of other commodities in the country as there is a direct relationship between the prices of fuel and other commodities.
More: <a href="https://www.herald.co.zw/just-in-gvt-slashes-usd-duty-on-fuel/">The Herald</a>

BREAKING: Govt Slashes Duty On Fuel Imported Using Free Funds

A motorist has posted on social media expressing disappointment after realising that some people do not queue for fuel as others do.
Posting on Twitter, <a href="https://twitter.com/dnyikadzino/status/1236540493963689985">@dnyikadzino</a> said:
<blockquote>Having been in the queue at 5am, connected chaps start showing up at 7am and head straight into the forecourt. The white Hilux with drums “buys lots of oil so <a class="link-complex" data-user-name="Total" href="https://twitter.com/Total/" rel="noopener user noreferrer" target="_blank">@Total</a> have cleared him to not queue” is the story we’re told. The queue is only 15cars long!</blockquote>
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Fuel is very scarce in Zimbabwe so motorists spend hours in elongated hours waiting for their turn to buy or waiting for the commodity to be delivered.
A recent survey conducted by the Sunday Mail observed that service stations which sell fuel in the foreign currency normally attract few people and they are with fuel in most of the cases.
More: <a href="https://twitter.com/dnyikadzino/status/1236540493963689985">@dnyikadzino</a>

WATCH: "Connected People Getting Fuel Faster"

A dire fuel crisis has hit the mining town of Gwanda as the town totally runs out of fuel, all service stations in the town are reportedly constantly out of fuel, The Chronicle reports.
According to a motorist that spoke to the publication, motorists are getting fuel at the black market:
<blockquote>The fuel situation in this town is so bad that it’s either there is no fuel at all in all service stations or there will be only one service station with fuel and there will be long queues.
I have opted to buy fuel from the black market which is going for R110 for 5 litres as the situation is unpleasant. This situation has to be addressed as soon as possible.</blockquote>
Meanwhile, the RBZ said it would <a href="https://news.pindula.co.zw/2020/03/04/rbz-to-publish-weekly-forex-allocations-to-fuel-companies/">publicise fuel finance facilities every week</a> to encourage transparency just after ZERA invited companies with <a href="https://news.pindula.co.zw/2020/03/02/full-text-zera-invites-fuel-companies-to-submit-proposals-to-sell-fuel-in-usd/">free funds to apply to sell fuel in forex</a>.
More: <a href="https://www.chronicle.co.zw/latest-gwanda-runs-out-of-fuel/">The Chronicle</a>

No Fuel At All Service Stations In Gwanda - Report

The <a href="https://www.pindula.co.zw/Zimbabwe_Energy_Regulatory_Authority" rel="noopener noreferrer" target="_blank">Zimbabwe Energy Regulatory Authority (ZERA)</a> said the demand for fuel, which has resulted in long winding queues at service stations across the country, is expected to normalise as the week progresses.
ZERA maintains that the surge in demand is attributable to the resumption of operations by companies that had closed during the festive season. Said ZERA:
<blockquote>The demand for fuel is set to normalise as the week progresses.
The spike in demand is due to the resumption of operations by companies that had closed for the festive season.
Expectations are that fuel supplies will continue to improve and motorists and other consumers are urged not to hoard as that creates artificial shortages.</blockquote>
On Friday last week, ZERA increased the prices for both diesel and petrol.
The price of diesel was raised from $17.90 to $19.55 while that of petrol was hiked from $17.44 to $18.28 per litre.
The move, according to ZERA, was necessitated by an increase in Free on Board (FOB) and interbank exchange rate.
<h4>More:<a href="https://www.herald.co.zw/demand-for-fuel-to-normalise-zera/" rel="noopener noreferrer" target="_blank"> The Herald</a></h4>

ZERA: Demand For Fuel To Normalise This Week

According to a blogger using the Twitter handle @Emoo_dj, the ZANU PF government told 14 major lies in 2019. Here are the lies:
<blockquote>1. Inflation to drop by December – @MthuliNcube [via @HeraldZimbabwe 10 October]
2. Cheaper basic goods by April [via @SundayMailZim 24 February]
3. Prices to start falling next month – @MthuliNcube [via @HeraldZimbabwe 13 June]
4. Prices will fall – @ZANUPF_Official [via @NewsDayZimbabwe 27 May]
5. Prices of basic commodities dropping [via @ZBCNewsonline 08 July]
6. Govt Working on a cocktail of measures that will expand the country’s foreign currency generating capacity [via @SundayMailZim]
7. US$20bn gas deal boom for Zim [via @HeraldZimbabwe 22 June]
8. Moza, Zim power deal done – @edmnangagwa [ via @HeraldZimbabwe, @MakushaEffort 09 July]
9. China to assist Zim deal with power shortages [via @ZBCNewsonline 24 May]
10. Zim, Russia conclude billion-dollar deals [via @HeraldZimbabwe 21 Aug]
11. Govt seals CSC recapitalization deal, to privatise ZUPCO [via @ZBCNewsonline 14 May ]
(Mind you CSC in Masvingo was supposed to start operating on 31 July 2018 – @nickmangwana)
12. Invictus unlocks second lucrative gas supply deal for Zimbabwe’s Muzarabani project [via @ZBCNewsonline 19 December]
13. Zim, Chinese firm seal massive Agric deal [via @HeraldZimbabwe 30 December]
14. RBZ pays for 24 month’s fuel [via @HeraldZimbabwe 08 Feb]</blockquote>
<h4>More: <a href="https://twitter.com/Emoo__dj/status/1211581704948912129" rel="noopener noreferrer" target="_blank">@Emoo_dj</a></h4>

14 Major Lies Told By The Government In 2019 - OPINION

Following the surge of petrol delivery services especially on social media, <a href="https://www.pindula.co.zw/Zimbabwe_Energy_Regulatory_Authority">ZERA</a> has said they will introduce hefty fines for such dealers as fuel is supposed to be transported and sold by licensed businesses that conform to safety standards Sunday News reports.
The acting ZERA CEO Mr Eddington Mazambani said:
<blockquote>Selling of petroleum products is a gazetted enterprise under the Petroleum Act Cap. 13:22 Section 29. It is illegal for any person or company to sell or retail fuel products without a license from Zera which is issued in terms of Section 31 of the Petroleum Act Cap. 13:22.
Transporting of petroleum products, which are classified as hazardous, without a valid permit is also an offence under the Environmental Management Authority Act Cap. 20:27.
Delivering fuel from door to door poses fire hazards, environmental contamination and compromises fuel quality due to improper handling.</blockquote>
Fuel shortages first hit Zimbabwe in October 2018 and queueing for fuel has been the norm since.
More: <a href="https://www.sundaynews.co.zw/zera-to-descend-on-fuel-dealers/">Sunday News</a>

ZERA Planning To Fine Social Media Fuel Delivery Dealers

Indigenous fuel importer’s licences are expiring at the end of this month, a development that has fuelled panic in the energy industry Mining Zimbabwe reports.
This has been further exacerbated by the fact that when some of the fuel importers tried to renew their licenses, <a href="https://www.pindula.co.zw/Zimbabwe_Energy_Regulatory_Authority">ZERA</a> played coy with their applications fueling rumours that some big fuel players are frustrating the licensing system.
Indigenous Petroleum Association of Zimbabwe Chair spoke to Business weekly and said:
<blockquote>The issue that has caused panic in the fuel industry has been the fact that most import licences for indigenous players are lapsing on December 31, 2019. So we have managed to engage ZERA and were issued with invoices to pay but the invoices have since been regarded as not genuine.
I have since paid for the renewal of the import licence but to date we have not received anything. This has massive ramifications on our part in terms of trading because our trading will be made difficult when operating with expired import licences.</blockquote>
<a href="https://www.pindula.co.zw/Sakunda_Holdings">Sakunda</a> has been accused of monopolising RBZ’s forex for fuel imports allocations according to the publication
More: <a href="https://miningzimbabwe.com/crisisindigenous-fuel-importers-licences-expire/">Mining Zimbabwe</a>

Local Indigenous Fuel Importer's Licenses Expiring End Of This Month And They Are Having A Hard Time Renewing Them - Report

<a href="https://www.pindula.co.zw/Zimbabwe_United_Passenger_Company" rel="noopener noreferrer" target="_blank">Zimbabwe United Passenger Company (ZUPCO)</a> buses on Wednesday ran out of fuel leaving thousands of commuters stranded in <a href="https://www.pindula.co.zw/Bulawayo" rel="noopener noreferrer" target="_blank">Bulawayo’s</a> western suburbs.
A ZUPCO driver who spoke to NewZimbabwe.com on condition of anonymity revealed that they had not received diesel since Monday. The driver said:
<blockquote>Each bus is allocated 100 litres of diesel for every two days. We have not been receiving our allocation for the past two days. We had been promised diesel on Monday but we did not receive anything.</blockquote>
The ZUPCO buses and commuter omnibuses are heavily subsidised by the government, charging only $1 (for buses) for trips that cost $4 when commuters board private <a href="https://www.pindula.co.zw/Kombi" rel="noopener noreferrer" target="_blank">kombis</a>.
The disappearance of ZUPCO buses was duly taken advantage of by private commuter omnibus operators who hiked fares from $4 to $5 per trip.
<h4>More: <a href="https://www.newzimbabwe.com/zupco-grounded-as-fuel-runs-out/" rel="noopener noreferrer" target="_blank">NewZimbabwe.com</a></h4>

ZUPCO Buses Grounded As Govt Fails To Provide Fuel

An undated video has surfaced on social media showing a long convoy of <a href="https://www.pindula.co.zw/index.php?title=Zimbabwe_African_National_Union_Patriotic_Front&amp;redirect=no" rel="noopener noreferrer" target="_blank">ZANU PF</a> branded all-terrain vehicles queuing for fuel.
Team Pachedu, a social media group of activists critical of the government has questioned how the ruling party owns more cars than ambulances at the country’s hospitals. <a href="https://twitter.com/PacheduZW/status/1183944910715707392?s=20" rel="noopener noreferrer" target="_blank">In a post on Twitter, Team Pachedu wrote:</a>
<blockquote>Ignore the fuel queue for a second!
How did ZANU-PF come to own more cars than ambulances and more houses than hospitals for 14+ million Zimbos?
… then you hear some dum dum nywe nyweing the silly and nonsense excuses about sanctions and austerity.
#FreeZimbabweCampaign</blockquote>
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WATCH: Long Queue Of ZANU PF Branded Vehicles At Fuel Service Station

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<div class="_5pcp _5lel _2jyu _232_" data-testid="story-subtitle" id="feed_subtitle_46;307873449260323;2404712262909754;2404712262909754;1570443853:-5383095452608636314:5:0">The MDC notes with great concern the continuation of the escalating energy crisis in Zimbabwe that is being worsened by the cluelessness of Mr Emerson Mnangagwa government in solving the country’s multi-layered crisis.</div>
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<blockquote>The MDC notes that every Sunday since September 2019, there was a Zimbabwe Energy Regulatory Authority ( ZERA) upward review of the prices of fuel but at no point during the same month was there an announcement on salary increases.</blockquote>
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<blockquote>Four fuel price increases mean four increases in prices of goods and services and Zimbabweans simply can no longer cope.
Such increases lead to higher expenditure on transport for the poor families and they result in dwindling contributions to medical aid schemes, pension funds and family investments.
The MDC calls for the abolition of fuel-blending monopoly and reiterates its call for the government to convene a multi-stakeholder conference on energy and power development in Zimbabwe.
The government can no longer afford to ignore the need to increase participation of more players in the fuel sector.
Ideas on how best we can solve the energy crisis can only come from a conference of key actors both inside and outside of government.
The MDC would wish to inquire from the Minister of Energy on whether or not the ZERA board meets to deliberate on these increases or they are written by an individual from their jacuzzi on a Sunday afternoon.
Serious consideration must be made to address power allocation for the formal and informal mining sector as they are the main source of the much needed foreign currency.
The 45% foreign currency being retained by the government should be ring-fenced for payment of electricity importation for the key sectors of our economy.
Rural electrification should be stopped forthwith and the government instead should invest in solar energy for the rural energy sector and the government must offer incentives to encourage more investment in the use of solar energy.
Hon. Jasmine Toffa 
Secretary for Energy and Power</blockquote>
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FULL TEXT: MDC Calls For Re-dollarisation Of The Economy To Tackle Energy Crisis

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WATCH: Long, Winding Fuel Queue At Marimba Shopping Centre, Harare

ZERA has increased the price of fuel once again for the umpteenth time this year. The new pump price for petrol and diesel are as follows:
Diesel $10.89
Petrol $10.41
ZERA has announced that fuel prices will be reviewed on a weekly basis to ensure that prices don’t lag behind.
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JUST IN: Fuel Up Again

A daring thief stole a Mercedes Benz at a fuel service station after telling the owner that he would refuel the car at a reserve tank.
After getting behind the wheel, the thief disappeared with the car, only abandoning it four hours later after failing to open the fuel tank at another service station. ZRP said in a statement:
<blockquote>ZRP Glenview has recovered a Mercedes Benz that had been stolen in Rhodesville, Harare. The complainant went to a service station to refuel his car where he was advised that there was no fuel.
The accused pretended to be an attendant and assured him that he could find some fuel from the reserve tank. Accused was allowed to drive the car and he disappeared.
The accused abandoned the car at a service station in Glenview after he failed to explain why he was failing to open the fuel tank while he was trying to refuel the car 4 hours later. We urge the public not to give their cars to strangers.</blockquote>

Harare Man Loses Mercedes Benz To Thief At Service Station

The acute fuel shortages experienced in the past few days have been attributed to a standoff between the Zimbabwe Energy Regulatory Authority (ZERA) and fuel dealers.
According to a prominent journalist, Hopewell Chin’ono, when ZERA announced the latest fuel price hike, it did not factor in the cost of delivery. He wrote:
<blockquote>There is a deadlock between ZERA and the fuel dealers because in the last fuel price increase, ZERA didn’t factor in the delivery cost.
Oil companies have decided not to move fuel until the issue is resolved. There hasn’t been deliveries since Friday apparently.</blockquote>
ZERA’s latest fuel price hike adjusted fuel prices by close to $2 per litre. Since January this year, the price of fuel has gone up by over 500 per cent in line with the fall in the value of the local currency.
The acute shortages have resulted in the emergence of humongous fuel queues.
Meanwhile, the government said that the fuel supply situation is expected to improve within the next few days.
Addressing journalists at a post-cabinet media briefing in Harare on Tuesday, Information Minister, Monica Mutsvangwa said:
<blockquote>Regarding fuel supply, Cabinet was informed that the situation had slightly improved during the week under review.
The Minister of Energy and Power Development also advised Cabinet that the fuel supply situation was expected to improve even further within the next few days, on the back of the funding arrangements currently under active consideration.</blockquote>

ZERA, Fuel Dealers Standoff Worsens Fuel Shortages - Report

Kombi operators have pleaded with the government to be allocated specific service stations where they can buy fuel.
Greater Harare Association of Commuter Operators (GHACO) met the Minister of Energy and Power Development Fortune Chasi on Thursday where it presented its petition.
The organisation’s secretary general Ngoni Katsvairo said:
<blockquote>We came here to ask the Government for assistance to access diesel easily so we can serve commuters. If there could be a few service stations set aside for registered kombis, it would improve the transport situation in the country.</blockquote>
Chasi told the Kombi operators that the government does not have the authority to tell fuel retailers to serve kombi vehicles only. He directed them to the Ministry of Finance. Said Chasi:
<blockquote>My ministry cannot facilitate fuel subsidies, but kombi operators can approach the Ministry of Finance with a concept note and argue their case. I am sure they will be granted an audience.</blockquote>
The kombi operators had offered Minister Chasi their vehicles to work under the ZUPCO franchise if the government needed more vehicles.
<h4>More: <a href="https://www.herald.co.zw/kombi-operators-reach-out-to-govt/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Kombi Operators Request Special Fuel Service Stations

Police in Mutare arrested a five-man gang suspected of illegal fuel dealings.
The five were arrested in the Nyamakate industrial area after being caught red-handed, draining fuel from a tanker.
<blockquote>This was revealed to The Herald by national police spokesperson Assistant Commissioner Paul Nyathi. He said:
The Zimbabwe Republic Police confirms the arrest of five accused persons in Mutare for unlawful dealing in fuel which occurred in Mutare on May 26, at around 2100 hours.
The five accused persons were arrested in Nyamakate area, Mutare, were they siphoned a total of 10 x 25, litres diesel from a tanker.
Police investigations revealed that one of the accused persons was the driver of the tanker. The ZRP has intensified its surveillance on illegal dealers and will not hesitate to arrest anyone found engaging in unscrupulous activities.</blockquote>
Meanwhile, the Minister of Energy and Power Development, Fortune Chasi, said that the government will clamp down on those involved in selling fuel on the black market, causing artificial shortages on the formal market.
<h4>More: <a href="https://www.herald.co.zw/fuel-syndicate-intercepted/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Police Bust Fuel Syndicate In The Dead Of Night

The government, through the Zimbabwe Energy Regulatory Authority (ZERA), has officially announced new fuel prices after having been in denial since Monday.
Two hours ago, ZERA sent out a strong statement warning fuel companies against raising the price and hoarding, but in a dramatic turn of events, the fuel price has since been hiked.
Some commentators are of the view that ZERA was forced to raise prices after fuel dealers stopped selling, anticipating the price to go up.
In a statement on Tuesday, ZERA announced that with effect from May 21, 2019, the price of diesel has been pegged at $4.89 while petrol will be sold at $4.97.
Since these new prices are applicable for 5 days, it means fuel might go up again depending on the interbank rate movement.
In the latest announcement ZERA said:
<blockquote>The Zimbabwe Energy Regulatory Authority (ZERA) advises that in terms of amendments to Statutory Instruments 9 and 10 of 2019 and the new measures taken by the Reserve Bank of Zimbabwe on fuel procurement based on the interbank rate, applicable prices for the period May 2019 to 26 May 2019 are summarised in the table below:</blockquote>
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JUST IN: New Official Fuel Prices Announced By ZERA

The government has been castigated for its latest inconsistent measures regarding the pricing fuel.
On Monday, the Reserve Bank of Zimbabwe announced that fuel dealers now have to access foreign currency at the prevailing exchange rate at the interbank market, a departure from the fixed 1:1 rate.
However, the government has quickly moved to stop dealers from adjusting fuel prices to reflect the new changes.
Fuel dealers have already come up with new fuel prices, but the move has been shot down by the government.
In his comments over these recent developments, award-winning journalist, Hopewell Chin’ono said:
<blockquote>This is the disorder in government that I always talk about. You tell fuel dealers that they now access foreign exchange at a higher premium yet you insist that they sell at old prices?
How do you expect them to replace the fuel that they would have sold at the old price?</blockquote>
Meanwhile, the government, through the Zimbabwe Energy Regulatory Authority (ZERA) has warned fuel dealers against increasing fuel prices or hoarding. Below is the full statement by ZERA:
<blockquote>
NOTICE TO FUEL OPERATORS  
The Petroleum Industry is advised that the prices of fuel have NOT changed and operators are expected to continue selling fuel into the market as is expected of them.  
Any operator found hoarding fuel will face the full wrath of the law. The Zimbabwe Energy Regulatory Authority (ZERA) and the Zimbabwe Republic Police (ZRP) Officers have been deployed in all the towns and cities to ensure compliance.
E. T. Mazambani ACTING CHIEF EXECUTIVE OFFICER ZIMBABWE ENERGY REGULATORY AUTHORITY  
ZIMBABWE ENERGY REGULATORY AUTHORITY  
2 1 MAY 2019  
P. 0. BOX CY 308, CAUSEWAY HARARE, ZIMBABWE
</blockquote>

Govt In Disarray Over The Pricing Of Fuel - Commentator

Government’s latest measures for the energy and transport sectors have been questioned as to their effectiveness, and the motive behind them.
Academic and political analyst, Alex Magaisa, questions how the ZUPCO buses will be subsided after the government reduced bus fares by half.
The slashing of bus fares comes as the government made another bold move, that is, liberalising fuel procurement.
The “hasty” decision to reduce ZUPCO bus fare is inevitable as the price of fuel is expected to rise.
Writing on microblogging site Twitter, Magaisa opined:
<blockquote>So the government has finally decided to “liberalise” fuel procurement, ditching the 1:1 fraud for the Interbank market rate. But there’s also a letter purportedly setting low fares for Zupco – effectively a subsidy. How that subsidy will be funded is not stated.
The government knows to ditch the 1:1 fraud will lead to price increases in fuel, transport fares (and other commodities) hence the Zupco subsidy. It’s designed to forestall protests. But how sustainable is this scheme in the long run? And what about other commodities?</blockquote>

'Govt Slashes ZUPCO Bus Fares To Prevent Protests'

Press Statement on the Payment Arrangements for Fuel through the Interbank Foreign Exchange Market and the Drawing down of USD500 million offshore Line of Credit:
<blockquote>The Reserve Bank of Zimbabwe (the ‘Bank’) is pleased to advise the public that with effect from 21 May 2019, the procurement of fuel by the Oil Marketing Companies (OMCs) shall be done through the interbank foreign exchange market.
There shall be only one foreign exchange rate to be used in the market for the importation of all goods and services.
This means that the 1:1 exchange rate that was being used by OMCs for the procurement of fuel will be discontinued with immediate effect.
The new position is necessary to promote the efficient use of foreign exchange and to minimise and guard against incidences of arbitrage within the economy…</blockquote>
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Full Text: RBZ Abandons 1:1 Rate For Fuel Companies

Minister of Finance and Economic Development, Mthuli Ncube made a rare appearance in Parliament on Tuesday, with MPs across the political divide “celebrating” his coming.
The MPs demanded that Ncube say something about the economy as there were concerns that he will abscond on Wednesday (today) when legislators are allowed to ask ministers questions on policy.
Outspoken MDC Alliance MP for Mbizo, Settlement Chikwinya, while acknowledging that Ncube has a busy schedule, demanded that he reveals when fuel will be available. Said Chikwinya:
<blockquote>Honourable Speaker Sir, Honourable Mthuli Ncube has not been coming to Parliament. We understand that he is a man in a busy office and we have come to understand and respect his situation.
Last week, many MPs were pointing to his office for failure to deliver.
Energy Minister Jorum Gumbo (now former) promised that fuel was there in Mabvuku but it was the Finance Minister whose responsibility it was for bringing the fuel from Mabvuku tanks to the people.
…I am delighted to see him in this parliament. We are a parliament which derives power from the people and therefore, our people are anxious to know when fuel will come from Mabvuku not to the fuel stations but to their tanks.</blockquote>
After a bit of commotion, the acting speaker of the House ruled that Ncube makes his ministerial statement on Wednesday (today).
<h4>More: <a href="https://www.newzimbabwe.com/mps-besiege-minister-ncube-as-he-finally-steps-into-parliament/" rel="noopener noreferrer" target="_blank">NewZimbabwe</a></h4>

Mthuli Ncube Cornered As MPs Demand Answers On Fuel Crisis

Central Bank chief, John Panonetsa Mangudya, said that the dire fuel situation will improve soon after the bank released Letters of Credit (LCs) worth US$50 million to the major fuel retailers in the country, the so-called Big Four.
The Big Four are Zuva, Engen, Sakunda and Puma and are said to have started receiving deliveries from Wednesday by the Minister of Energy and Power Development, Joram Gumbo.
Mangudya said that in future, LCs will be processed earlier to avoid gaps which result in fuel shortages on the market. Said Mangudya:
<blockquote>The situation has started to improve, starting Wednesday this week because nearly every fuel company was given LCs, including the big four.
Going forward, the RBZ is working towards synchronising the lead time between the establishment of the LCs and their confirmation so there are no gaps in the release of the product to the market.
The lead time must be minimised and we are going to be more meticulous going forward to minimise time difference between the establishment of LCs and supply of fuel.</blockquote>
According to Investopedia, a letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
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Mangudya Releases US$50 Million For Fuel, Situation To Normalise Soon

The Minister of Energy and Power Development, Joram Gumbo, revealed that he was authorised by President Emmerson Mnangagwa to release fuel from strategic reserves during last month’s Easter holidays and the Zimbabwe International Trade Fair (ZITF).
The fuel has since been exhausted resulting in the re-emergence of long and winding fuel queues across the country.
Gumbo added that when it comes to the availability of fuel on the market, the best people to talk to are RBZ governor John Mangudya. Said Gumbo:
<blockquote>I did explain that there was a huge improvement during the ZITF and Easter because I requested his Excellency (Mnangagwa) to allow me to release what we call ‘strategic fuel’ which is kept by the government and that is what I asked his Excellency.
He allowed me and I released that into the market hoping that this would assist (Reserve Bank of Zimbabwe governor John) Mangudya.
Industry must provide the forex so that they (Reserve Bank of Zimbabwe) can dish it out (to import fuel).
I had released 20 million litres of fuel last time, 12 million litres of diesel and eight million litres of petrol, into the market from the strategic reserves of government. So you talk to Mangudya about the matter.</blockquote>
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<h4><a href="https://news.pindula.co.zw/2019/04/17/govt-avails-20-million-litres-of-fuel-for-easter-holiday/" rel="noopener noreferrer" target="_blank">Govt Avails 20 Million Litres Of Fuel For Easter Holiday</a></h4>
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<h4>More: <a href="https://www.newsday.co.zw/2019/05/ask-mangudya-about-fuel-gumbo/" rel="noopener noreferrer" target="_blank">Newsday</a></h4>

Don't Ask Me About Fuel, Ask Mangudya - Energy Minister

The Minister of Energy and Power Development, Joram Gumbo, revealed that the erratic fuel supplies are a result of a shortage of foreign currency to pay the international suppliers.
In an interview with the Daily News, Gumbo said that the buck stops with the Reserve Bank of Zimbabwe (RBZ) which allocates foreign currency. Said Gumbo:
<blockquote>I only provide fuel and it is in the country; the one who buys the fuel is Reserve Bank (of Zimbabwe) governor John Mangudya.
The fuel is there but if there is no foreign currency to access it then the international suppliers will not give us the fuel; it is that simple.
The problem is with foreign currency allocation and unless the situation improves then the queues will continue to increase.
I may only come in when the situation demands and ask the president (Emmerson Mnangagwa) to release fuel from the strategic reserves.
During the Easter holiday and also during the (Zimbabwe International) Trade Fair I asked the president to give me the green light to access the reserved fuel; I had to do so because many people were travelling and the situation was better but it seems the RBZ relaxes once we do that.</blockquote>
Presidential spokesperson, George Charamba, told the Daily News that there is adequate fuel in the country;
<blockquote>There is fuel in the country, (it is just that) we can’t afford it. Fuel suppliers in the country, such as Trafigura and Glencore have fuel stocks running into millions but those millions have to be paid for in terms of foreign currency.</blockquote>
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RBZ 'Responsible' For Fuel Shortages - Energy Minister

The government said that there will be adequate fuel during the Independence and Easter holidays.
The Minister of Information, Monica Mutsvangwa told a post-Cabinet media briefing that 20 million litres have been injected. Said Mutsvangwa:
<blockquote>The Minister of Energy and Power Development informed Cabinet that measures have been taken to ensure that there will be adequate fuel supply with an injection of 20 million which has been uplifted as from last night (Tuesday night).
This means there will be enough fuel in the country as we go towards Easter and Independence holidays.
There will be enough fuel for all to attend independence celebrations and also for those who may want to travel for Easter.</blockquote>
Energy and Power Development Minister Joram Gumbo said that the 20 million litres would augment current supplies. Said Gumbo:
<blockquote>Our daily consumption of fuel at the moment is about three million litres of diesel per day and two million litres of petrol per day.
The 20 million litres injection which started to be uplifted as from last night is an addition to the already or normal fuel that we normally receive in the market.
As far as we are concerned, people must be able to enjoy the holidays without any hitches.</blockquote>
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Govt Avails 20 Million Litres Of Fuel For Easter Holiday

A man driving a Honda Fit caused a commotion at a service station in Marondera on Monday after he bought 400 litres of fuel while other motorists were restricted to only 40 litres.
Motorists who were queuing for the precious liquid were angered by the move as they suspected fuel attendants of corruption and fuelling the fuel black market.
Police and officials from the Environmental Management Agency (EMA), had to be called in to diffuse the volatile situation.
EMA provincial spokesperson Astas Mabwe confirmed on Tuesday that the motorist identified as Norman Nyandoro had been issued with a $500.00 ticket for transporting a dangerous substance without a licence. Said Mabwe:
<blockquote>EMA issued him (transporter) with a ticket of ZWR$ 500 for contravening SI [Statutory Instrument] 268 of 2018, which requires one to have a licence issued by the agency for transportation of hazardous substances.
The fuel, about 400 litres, was loaded into a Honda Fit and according to the driver, it was being transported to Harare.
The fuel was loaded in varied container sizes totalling seven. The vehicle and fuel are currently with the police. We would like to urge people to comply with the requirements of the law in light of intermittent fuel supplies.</blockquote>
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Chaos At Service Station As Honda Fit Driver Buys 400 Litres Diesel

The Minister of Energy and Power Development, Joram Gumbo on Wednesday said that the current fuel challenges being experienced in the country were being caused by shortages of foreign currency.
Gumbo revealed that the government has liberalised the importation of fuel to allow big companies with free funds to play a role. Said Gumbo:
<blockquote>The biggest problem is not about fuel per se, but the provision of forex. We have facilities in place but those handling the finances have foreign currency challenges which were compounded by the cyclone disaster which happened recently.
Our people should also not rely on social media.
Even after the cyclone, we resumed pumping on March 24 and fuel is coming into the country. Enough stocks are there in bond.
We are negotiating with big companies like Trafigura and IPG with whom we have big facilities to understand our situation and give us leeway as we mobilise funds to pay them.
We have delayed and failed to meet our commitment because of the challenges we experienced recently.</blockquote>
Minister Gumbo said that the government has no plans to raise the price of fuel. The only adjustments that will be seen are those determined by the Free on Board (FOB) prices at Beira, he said.
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