UNLEADED FUEL BANNED IN ZIM

The government has announced a ban on the sale of unleaded petrol, mandating that all petrol be blended with ethanol.

This regulation, effective next week, is a pivotal step in the country’s energy strategy designed to promote biofuels.

The ban was formalized in the recent amendment to the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) Regulations, 2024 (No. 6).

The Minister of Energy and Power Development, following consultations with the Zimbabwe Energy Regulatory Authority (ZERA), has exercised the powers granted under section 57(1) of the Petroleum Act [Chapter 13:22] to implement these changes.

This is a positive step towards creating a sustainable environment given Zimbabwe’s unbreakable commitment to coal powered electricity.

One immediate beneficiary of this regulation is Billy Rautenbach, owner of Greenfuels, a company focused on blending petrol with ethanol.

Rautenbach's business stands to gain significantly, as it currently generates millions daily from blended petrol.

However, concerns about pricing persist; while ethanol typically costs around 80 cents per litre in other countries, Rautenbach is selling it at approximately US$1.20 per litre in Zimbabwe.

This raises questions about whether the blended petrol, intended to provide a cost-effective alternative, will indeed lower prices for consumers, since fuel in Zimbabwe is currently more expensive than unleaded petrol in neighboring countries.

The environmental implications of this policy are noteworthy.

The shift to ethanol blending aligns with Zimbabwe's commitments under the Paris Agreement, which aims to limit global temperature increases to below 2°C. Zimbabwe has pledged to reduce its emissions by 40% by 2030, an increase from its earlier target of 33%.

This commitment highlights the country’s dedication to enhancing environmental sustainability, despite its relatively minor contribution of less than 0.1% to global greenhouse gas emissions.

While the initial impacts of the ban may lead to unstable fuel prices in the short term, the long-term advantages for pollution policy and environmental health could be substantial.

By mandating ethanol blending, the government aims to decrease reliance on fossil fuels, thereby reducing greenhouse gas emissions. This is a significant shift in national energy policy, potentially benefiting both the environment and the economy.

Thus, while immediate concerns about pricing and market dynamics exist, the long-term vision of reducing emissions and promoting sustainable energy sources offers promise for Zimbabwe's future.

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