By News Hour
Harare – Zimbabwe’s government has announced a ban on the sale of unleaded petrol in its endeavor to
reduce the country’s reliance on imported fossil fuels.
The ban on the sale of unleaded fuel comes into effect this week through statutory instrument 150 of 2024 which makes the sale of fuel with ethanol mandatory.
This decision is backed by Statutory Instrument 150 of 2024, which mandates the blending of ethanol with unleaded petrol.
Following consultations with the Zimbabwe Energy Regulatory Authority (ZERA), the minister of energy used his powers under Section 57(1) of the Petroleum Act [Chapter 13:22] to effect these modifications.
“Section 3 of the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) Regulations, 2013, published in Statutory Instrument 17 of 2013, is repealed and substituted by the following.
“These regulations shall apply to all unleaded petrol imported into Zimbabwe. Subsection (1) shall come into operation seven days from the date of publication of these regulations.
“These regulations shall apply to all unleaded petrol imported into Zimbabwe. Subsection (1) shall come into operation seven days from the date of publication of these regulations,” reads the Government Gazette.
This change is intended to promote the use of renewable energy sources and support local ethanol production.
Government’s decision to ban unleaded fuel and enforce ethanol blending has however, attracted criticism, with some arguing that it benefits president Emmerson Mnangagwa’s ally, Billy Rautenbach’s business and political interests.
Rautenbach’s company, Green Fuel, is the only provider of ethanol for blending in the country.
Critics argue that by forcing ethanol blending, the government effectively assures a profitable market for Green Fuel which has a monopoly on ethanol supply in Zimbabwe, allowing him to make significant profits.
In other countries, blended ethanol is sold at 80 cents a litre, while locally it is selling it at US$1.20 a litre.
The implementation of the ban which comes into effect this week has raised concerns among motorists and fuel retailers, who may face challenges in adjusting to the new requirements.
It remains to be seen how the market will respond to the government’s decision and whether the intended benefits will outweigh the potential drawbacks.
