Officials in the Ministry of Energy and Power Development
are leaning on the Reserve Bank of Zimbabwe (RBZ) to release letters of credit
(LCs) that are needed to release fuel for oil traders.
International fuel traders have been maintaining a month’s
supply of fuel at National Oil Infrastructure of Zimbabwe (NOIC)’s Msasa depot.
It is only released after payment has been made. There has
been an exponential demand for fuel in the past two weeks after Government
relaxed the lockdown and allowed registered businesses to reopen.
Energy and Power Development Permanent Secretary Engineer
Gloria Magombo said the ministry is liaising with the RBZ and Ministry of
Finance and Economic Development to solve the fuel crisis.
RBZ Governor Dr John Mangudya and his deputy Dr Kupukile
Mlambo were not reachable for comment as their mobile phones went unanswered.
According to Eng Magombo, the RBZ had released 43 million
litres of both petrol and diesel in the past fortnight, with 15 million litres
availed on Thursday. Retailers received fuel through NOIC under a bridge
financing facility by the RBZ.
“We want to assure the public that we want to make sure
there is sufficient product on the market,” she said.
“We have been engaging the RBZ and the Finance (and
Economic Development) Ministry, and the central bank is working on letters of
credit for oil companies. Some fuel has been released already and LCs (letters
of credit) are coming soon.”
It is believed that the oil industry last received LCs from
the apex bank on March 14, 2020, which affected the traders’ ability to buy
fuel from NOIC.
Fuel traders are lobbying for liberalisation of the oil
industry to allow private players to supply the commodity.
However, Eng Magombo said private companies and individuals
with free funds could import fuel.
“Let me also remind Zimbabweans that we are still under
lockdown and people should minimise movements,” she said.
“This also means that we cut down fuel usage and slow
increased demand. By minimising movement, we fight both Covid-19 and fuel
shortages.”
Zimbabwe consumes between 4,5 million and 5 million litres
of both petrol and diesel daily, translating to 150 million per month.
Last month, NOIC disbursed about 110 million litres of
fuel, but the long queues persisted.
Government has since ordered the Zimbabwe Energy Regulatory
Authority (Zera) to investigate cases of illegal fuel trade.
Zera recently threatened tough action against unscrupulous
dealers who were diverting the NOIC fuel for sale in US dollars on the black
market. Sunday Mail
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