Govt u-turns on unleaded fuel ban

The government has made a U-turn on the ban on unleaded fuel following President Emmerson Mnangagwa’s intervention, Information minister Jenfan Muswere has said.

Government last month announced the ban on unleaded petrol through Statutory Instrument 150 of 2024.

Energy and Power Development minister Edgar Moyo said he announced the changes in consultation with the Zimbabwe Energy Regulatory Authority.

Muswere, however, said “no policy position exists” on banning unleaded fuel.

He made the remarks recently at the National University of Science and Technology’s 11th Annual International Conference on Communication and Information Science.

“The first question is about unleaded fuel. And the response is firstly, I am the official government spokesperson,” Muswere said.

“There have been discussions around this issue, but the government of Zimbabwe makes science-based decisions.

“When we had our discussions some few weeks ago, His Excellency directed that whatever discussions (that) revolved around unleaded fuel, the discussions had not been comprehensive enough and that it was not government position to ban unleaded fuel.”

Muswere said discussions on the ban were not based on an official government policy position.

“The second item is that in the majority of cases, there has been a taxation loophole around the importation of unleaded fuel,” he said.

He said there were discussions around the blending ratios among stakeholders.

“The rational sense also in part of the discussions around the blending ratios,” Muswere said.

“The more a country is able, in terms of human capital development, to research, to come up with a blending ratio and reduce its import bill and create employment, the better for the country.

“The more a country exports than it imports, it generates a positive balance of trade. But the official government position is that no policy position exists.”

According to SI 150 of 2024, all unleaded petrol imported into Zimbabwe was supposed to be blended with anhydrous ethanol.

This meant that fuel importers should mix a certain percentage of ethanol with petrol before selling it to motorists.

The decision sparked outrage among motorists, who argued that they should be freedom to choose preferred fuel type.

Newsday