Zimbabwean fuel traders are demanding clarity on the sale of unleaded fuel due to conflicting statements from government ministries, which are causing confusion among operators.
In August 2024, the government issued Statutory Instrument (SI) 150 of 2024, mandating fuel importers to blend a specific percentage of ethanol with petrol before selling it to motorists.
However, Information minister Jenfan Muswere later stated that “no policy position exists” on banning unleaded fuel, contradicting the earlier directive.
This policy flip-flop has left both motorists and fuel dealers puzzled and questioning the government’s regulatory inconsistencies as the Zimbabwe Energy Regulatory Authority (Zera) continues to fine and penalise fuel operators selling unleaded fuel.
“We are currently engaging with the government on the issues of SI 150 and SI 162, along with stated government policies, trying to come up with a good solution for the situation. So, I cannot comment on these issues until they are settled,” general secretary of Direct Fuel Importers Bart Mukucha told businessdigest.
SI 162 of 2024 increased the duty of unleaded fuel to US$0,55 per litre from US$0,30.
One fuel dealer, who wished to remain anonymous, criticised the lack of clarity from the government.
“I think there are two SIs, SI 150 and SI 162. I think they were set up by different ministries — the Ministry of Energy, and the Ministry of Finance. So, the one from Finance actually increased the duties on unleaded fuel,” the dealer said.
- Low tariffs weigh down ZETDC
- Zesa doubles power charges
- ZERA announces another fuel price increase
- Zim needs 450 megawatts of imports to fill energy gap: Magombo
Keep Reading
“I do not know why they did it. So, that shows that the policies or these SIs are actually conflicting with each other. I am not a lawyer to really anticipate, but from what we heard in discussions, the government is actually increasing the duty on unleaded fuel, especially by road, because the only way to bring in unleaded fuel is by road.”
The source said that the high price of ethanol at US$1,04 per litre was making it challenging for fuel businesses and motorists to adapt.
Several fuel operators accused Zera of being picky in its enforcement of the laws.
Contacted for comment, Zera chief executive officer Eddington Mazambani said “previously, the law mandated ethanol blending for unleaded petrol imported via pipeline and rail. Unleaded petrol imported via road was exempted from mandatory blending with ethanol.
“Statutory Instrument 150 of 2024 now mandates ethanol blending for unleaded petrol imported via pipeline, rail and road, thus effectively banning the sale of unblended petrol at retail sites.”
He said after SI 150 of 2024, the authority sent a notice to oil marketing companies (OMCs) to comply with new legislation.
“After giving OMCs reasonable time to clear stocks of unblended petrol at retail sites, Zera then moved in to enforce SI 150 of 2024. Zera noted during enforcement inspections across the country that most OMCs had since complied with SI 150 of 2024,” Mazambani said.
“To date, three fuel retail sites in Bulawayo and one fuel retail site in Beitbridge have been prosecuted for selling unblended petrol. The site in Beitbridge has since been convicted by the magistrate’s court, while the cases of three Bulawayo retail sites are still before the magistrate’s court.”
He said the authority would continue to enforce SI 150 of 2024 as part of its compliance work.
