Acting Minister of Energy and Power Development, Zhemu Soda, has assured that Zimbabwe holds sufficient fuel reserves to meet demand for the next three months, easing fears of potential shortages caused by the ongoing conflict in the Middle East.
Speaking to parliamentarians in the National Assembly on Wednesday, Soda, who is also Minister of Information, Publicity and Broadcasting Services, said that if the conflict persists, Zimbabwe will explore alternative supply sources, including within the region. He said:
“Yesterday, Mr Speaker sir, the Minister of Energy presented a report indicating the level of our stocks that we are holding in the country, both diesel and petrol, including Jet A1 for our aeroplanes.
“And we also were briefed about the stocks that are in transit between our country and Beira, and also the ships that are about to dock in Beira.
“It shows we have some stocks that can take us for the next two to three months, and the government is making all necessary arrangements, Mr Speaker, sir, to ensure that if the conflict extends, we will be able to get fuel for our operations in the country, including LPG gas.”
Soda conceded that any disruptions to fuel supply routes, whether due to geopolitical tensions or logistical challenges, are likely to push up fuel prices. He said:
“Prices are a function of supply and demand. For as long as our supply routes are disrupted, obviously, the prices will respond.
“Already, some of the routes, I think we are all aware, that as a result of the conflict, there are some routes that have since been closed. And obviously, as a result, prices will be responding.”
Soda also said that, given the current crisis, Zimbabwe will seek fuel supplies from within the SADC region. He said:
“Mr Speaker, because we are now in a crisis, there is nothing that can stop us from scouting for the availability of the product from within SADC.
“It’s something that I will take to the Minister to ascertain if we can have some stocks within SADC, and also the other modalities that follow after ascertaining the quantities that can be obtained within SADC.”
Hours after Zhemu’s remarks in Parliament, the Zimbabwe Energy Regulatory Authority (ZERA) increased the price of diesel to US$1.77 per litre, from US$1.52, while petrol now costs US$1.71 per litre, up from US$1.56.
ZERA said the new prices take immediate effect and will remain in place for the next two weeks.
ZERA added that the actual prices would have been higher — US$1.90 per litre for diesel and US$1.81 per litre for petrol — had the Government not reduced some of its charges to cushion the consumers from astronomical increases that have happened from changes in the international market.
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