Government Increases Mandatory Ethanol Blending Ratio To Curb Fuel Import Bill

4 years agoFri, 26 Apr 2019 04:50:23 GMT

Government Increases Mandatory Ethanol Blending Ratio To Curb Fuel Import Bill

The government on Thursday raised the mandatory ethanol blending for unleaded petrol from five percent to 10 percent with effect from April 25. The increase is aimed at lowering the fuel import bill.

Earlier, the government lowered the ratio to 5 percent from 15 percent as a result of reduced capacity at Chisumbanje-based Green fuel. Zimbabwe Energy Regulatory Authority (Zera) chief executive officer, Eddington Mazambani says that the review follows an increased ethanol output by Green Fuel, a company owned by Billy Conrad Rautenbach.

A government gazette which announced the review said:

The consequences of this approval is that all licensed operators shall from the date of publication of the general notice be mandated to sell unleaded petrol blended at E10.

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Green Fuel is reported to have increased its production capacity to 90 million litres of the ethanol blend, up from 40 million it was producing in 2016.

Fuel companies can either purchase already blended petrol from National Oil Company of Zimbabwe or carry out their own blending. ZERA has said that it will keep monitoring and evaluating conduct by companies to ensure compliance with new regulations.