Source: Govt opens new fuel routes to safeguard supply – herald
Herald Reporter
GOVERNMENT is opening up new supply avenues and strengthening distribution systems to ensure the continued availability of fuel across the country, even as global market pressures intensify.
This comes as global fuel prices have increased owing to the conflict in the Middle East, a key oil-producing region, which has disrupted supply chains and pushed up the cost of petroleum products on the international market.
In its latest update yesterday, the Zimbabwe Energy Regulatory Authority (ZERA) announced a review of fuel prices, with petrol now pegged at US$2.17 per litre, up from US$1.71 per litre, while diesel rose to US$2.05 per litre from US$1.77, as part of ongoing measures to ensure market stability and continued supply.
ZERA said Government was actively pursuing alternative supply routes to minimise the impact of disruptions caused by the Middle East conflict.
Recently, Government moved to reduce some taxes and levies on fuel to cushion consumers from steep price increases, a move that helped moderate pump prices that would have otherwise risen sharply in line with global trends.
To further enhance supply flexibility, Government has approved the importation of diesel by road with immediate effect, in addition to existing pipeline and rail systems.
“Working with oil traders, the Government is opening up supply routes not affected by the current conflict in the Middle East. As a way to open up other avenues for the importation of diesel, Government has, with immediate effect, approved the importation of diesel by road, in addition to pipeline and rail,” ZERA said in a statement.
“The Government, through ZERA, continues to monitor the security of supply of petroleum products in the market. In that regard, Government notifies stakeholders that there are enough stocks of petroleum products in the supply chain, starting from Beira and inland storage facilities with more than three months’ supply cover.”
As part of broader measures, authorities are also ensuring equitable distribution of fuel across the country, particularly in remote areas. This will be done through Government owned companies, Petrotrade and NOIC.
While fuel supply remains stable, the regulator noted that global cost pressures were continuing to mount, necessitating periodic price adjustments to maintain viability of the market.
“However, while Government ensures security of fuel supply, ZERA notices that the cost pressures are piling up and these require that prices be reviewed for two weeks to avoid fuel shortages and arbitrage,” the regulator said.
Authorities also indicated that special consideration was being given to key productive sectors of the economy.
Diesel pricing, in particular, was being managed to support mining, agriculture, transport and other critical industries.
“The new price of diesel has been set with a view to mitigate the impact of the increase to the mining, agriculture, haulage services and passenger transport sectors. Government will endeavour to keep the price of diesel lower than what it ought to be. Without Government intervention, the price of diesel would have been US$2.20 per litre,” said ZERA.
Zimbabwe, like many fuel-importing countries, remains sensitive to global oil market fluctuations.
The ongoing conflict in the Middle East has led to supply disruptions, closure of key routes and reduced output in some oil-producing areas, triggering a surge in international crude oil prices.
Regionally, several countries have already adjusted fuel prices upwards in response to these developments, reflecting the broader global trend of rising energy costs.
However, Zimbabwe’s approach has focused on cushioning consumers, maintaining strategic reserves and ensuring supply security through diversified import channels.
With more than three months’ supply cover and additional shipments in transit, coupled with new import and distribution measures, Government’s interventions are expected to sustain fuel availability while managing the impact of global volatility on the domestic market.
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