RBZ moves to end fuel crisis

RBZ moves to end fuel crisis
Published: 26 May 2018 (86 Views)
Intermittent fuel shortages experienced in some parts of the country in the past week are expected to disappear after the Reserve Bank of Zimbabwe (RBZ) increased foreign currency allocations for fuel to about $85 million per month, starting mid this month.

The increment in foreign currency allocations for fuel, which is about 50 percent compared to earlier months, has been necessitated by challenges experienced by motorists and industrialists in accessing fuel in the past few weeks.
Further, a jump in international prices of oil has meant that more money is now required to buy fuel.

RBZ Governor Dr John Mangudya told The Herald on Thursday that they had increased foreign currency allocations for fuel to ensure the commodity is readily available.

"We have increased (monthly allocations for fuel per month) to between $80 and $85 million (from) mid-May 2018," said Dr Mangudya.

The move by the RBZ comes at a time when Government is pressing ahead with efforts to guarantee uninterrupted supplies of petrol and diesel in the country.

Confederation of Zimbabwe Industries (CZI) president Mr Sifelani Jabangwe conceded this week that fuel consumption had increased in the country, warranting an increase in foreign currency allocations for imports.

"There has been an increase in the consumption of fuel. We now need to increase our budget on fuel but it's going to put pressure on the demand for foreign currency.

"Fuel demands more foreign currency than any other commodity and that is my biggest worry. We will require an increase in exports to overcome that (foreign currency shortages)," said Mr Jabangwe.

The country now has a huge vehicle population of up to 1,8 million while new factories have been opened, existing ones have ramped up production causing a surge in demand for fuel.

Fuel and electricity are high priorities in terms as of foreign currency allocations in the country given their centrality to Government's industrialisation agenda.

The RBZ has previously indicated that it allocates about $20 million to Zesa so that it imports power from South Africa's Eskom and Mozambique's Hidroelectrica de Cahora Bassa (HCB).

Zimbabwe imports about 300MW from Eskom and HCB to augment local generation.
Fuel prices have been trekking upwards in recent weeks to $1,41c in response to rising international prices, which rose to about $80 per barrel last week due to geopolitical tensions in the Middle East, and attempts by Oil Producing and Exporting Countries (Opec) to reduce supply and force a price increase.

However, oil prices had retreated to $67,48c per barrel by yesterday afternoon.
Mr Patrick Pouyanne, CEO of France-based oil firm Total, last week hinted that international oil prices might hit $100 by year-end.

- the herald

Tags: RBZ, Fuel, Crisis,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Omega Sibanda launches his Zanu-PF campaign

by Staff reporter | 21 June 2018 | 88 Views

Chinamasa proud of bins ceremony

by Staff reporter | 21 June 2018 | 106 Views

Mnangagwa to tour Ekusileni

by Staff reporter | 21 June 2018 | 85 Views

Andy Muridzo wife refuses to kiss him in public

by Staff reporter | 21 June 2018 | 117 Views

Omega Sibanda launched his Zanu-PF campaign

by Staff reporter | 21 June 2018 | 82 Views

Spot FM changes name to Classic263

by Ndou Paul | 21 June 2018 | 56 Views

Mnangagwa takes campaign trail to Bulawayo

by Staff reporter | 21 June 2018 | 75 Views

ZESA employee electrocuted in Bulawayo

by Staff reporter | 21 June 2018 | 68 Views

Are tattoos good for our youths

by Tondorindo | 21 June 2018 | 74 Views

Welcome back our Original Mazoe drink

by Thomas Murisa | 21 June 2018 | 79 Views

Zanu-PF candidates threatening to shut down churches in Hobhouse

by Fanuel Chinowaita | 21 June 2018 | 88 Views

Mnangagwa to resume issuance of grants

by Staff reporter | 21 June 2018 | 69 Views

Your success is in your state of mind

by Enos Denhere | 21 June 2018 | 66 Views

Chamisa showed his true colours when he chose Mugabe over Khupe

by Anthony Mkondo | 21 June 2018 | 87 Views

Mutsvangwa barred from evicting Chipanga from farm

by Staff reporter | 21 June 2018 | 97 Views

Parly exposes Obert Mpofu

by Staff reporter | 21 June 2018 | 94 Views

Mugabe ally in court over political violence

by Staff reporter | 21 June 2018 | 82 Views

Chamisa to boycott Zimbabwe polls?

by Staff reporter | 21 June 2018 | 142 Views

WATCH: Zanu PF, MDC Alliance square off in TV debate

by CNBC Africa | 21 June 2018 | 116 Views

Woman to contest DNA test for 3rd time

by Staff reporter | 21 June 2018 | 118 Views

MTN increase LTE coverage and download speeds

by MyBroadband | 21 June 2018 | 75 Views

Mutsvangwa booed, storms out of debate

by Staff Reporter | 21 June 2018 | 175 Views

#ChinamasaChallenge a hit on Twitter

by Ndou Paul | 21 June 2018 | 144 Views

Teachers slam Mnangagwa

by Staff reporter | 21 June 2018 | 118 Views

Spot FM Zimbabwe change name to Classic263

by Ndou Paul | 21 June 2018 | 101 Views

Zuma warned Chamisa against pact with Mugabe

by Staff reporter | 21 June 2018 | 201 Views

Mugabe's health condition 'is nothing serious'

by AFP | 21 June 2018 | 93 Views

Mukupe ordered to return journalist's cellphone

by MISA | 21 June 2018 | 86 Views

Cleansing ceremony for Gweru- Kwekwe highway black spot

by Staff reporter | 21 June 2018 | 143 Views

.Man hangs self in neighbour's yard

by Staff reporter | 21 June 2018 | 166 Views

Peter Ndlovu's story told in World Cup advert

by Staff reporter | 21 June 2018 | 183 Views

Banks set to cut transaction costs

by Staff reporter | 21 June 2018 | 148 Views