ZERA Urged To Remove Duty On LPG Equipment, Gas

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ZERA Urged To Remove Duty On LPG Equipment, Gas

The Zimbabwe Energy Regulatory Authority (Zera) has been urged to remove duty for the importation of liquefied petroleum gas (LPG) and equipment to ensure a reasonable pricing model on the local market.

The increased calls follow a spike in the price of gas and equipment with some attributing the development to shortages of the commodity on the market.

Some dealers are reportedly selling gas at US$2.60 per kilogramme, up from an average of US$1.50 last year.

In a letter dated 25 January 2021 which was addressed the Zera, stakeholders in the energy sought for a reprieve on duty. Read the letter in part:

In light of current high LPG prices, Zera should with immediate effect regulate the price of LPG as it is under its scope like petrol and diesel and protect consumers.

Zera should liaise with the ministry of Finance to ensure reasonable flat rate or scrapping of duty on LPG equipment like digital scales, pumps, cylinders (domestic and bulk), piping and ancillary connection equipment.

Many households resorted to using gas at the height of the power crisis that saw some areas going without electricity for about 18 hours daily.

Although electricity was cheaper than gas, relying on electricity was not prudent. When the electricity issue was normalised, some continued using gas as authorities constantly raised electricity tariffs.

Moreover, the rainy season always causes electricity issues as wind and heavy rains destroy powerlines.

More: Daily News



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