A US$15 million facility has been approved by Government to pay for imports of fuel that will be sold in local currency by service stations starting at the end of this month.
The fuel will be available to all those who want to access
it, according to an instruction President Mnangagwa has given to the Ministry
of Energy and Power Development.
Most fuel at present is sold in foreign currency, with
imports done through free funds, largely the foreign currency paid by users.
There were modest imports using foreign currency auction
funds, with some cheating and selling this in foreign currency, but few have
been bidding recently for auction funds for fuel, hence the need for the direct
Government action.
Last month, the energy sector regulator, the Zimbabwe Energy
Regulation Authority (Zera), flighted an advert inviting fuel station owners
and distributors who wished to participate in supplying fuel in local currency.
So far, 57 fuel station owners and distributors have
responded and the first tranche of 15 distributors and fuel station owners is
now working with Zera and the Reserve Bank of Zimbabwe on modalities to ensure
that the facility is water tight.
Acting Energy and Power Development Minister Dr Jenfan
Muswere confirmed the development yesterday.
According to details made available, the Zimbabwe dollar
fuel facility will also be extended to State-owned enterprises and strategic
Government contracts for roads and dams construction.
The ministry has already developed some of the modalities
and frameworks in monitoring the implementation of the Zimbabwe dollar fuel
scheme.
They include that all fuel companies should have the
national fuel management system installed, that designated service stations
should sell in local currency only and Zera will monitor and analyse the
specific supplier, including banking transactions.
Companies are also expected to submit weekly returns to
Zera, and ensure that service stations selling fuel in local currency are
advertised in the print and electronic media.
Companies participating in the facility must have at least
three service stations in different provinces.
Containers are banned for the Zimbabwe dollar fuel, which
will prevent people buying in local currency and selling in foreign currency.
The participating companies will be barred from uplifting
fuel from the National Oil Infrastructure Company depots before reconciling the
previous allocation.
Hefty penalties will be applied on companies that fail to
account for proper application of fuel sold in local currency.
Fielding questions from backbenchers in the National
Assembly on Wednesday, Dr Muswere said the framework was being developed, which
will see Zera working closely with the Reserve Bank and fuel suppliers and
distributors to come up with a list which will then be published by the
Ministry of Energy and Power Development.
Responding to a question from Buhera South legislator, Cde
Joseph Chinotimba (Zanu PF), who wanted to know how soon the facility would be
ready, Dr Muswere said: “What I would like to assure him and this House is that
before the end of this month, the Zimbabwean dollar fuel facility will be fully
functional.” Herald
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