The Zimbabwe Fuel Crisis of 2018 was a shortage of Petrol and Diesel that occurred from the beginning of September 2018 to the end of October 2018 and then again from mid-November onwards. At the end of October 2018, the crisis ended after the government negotiated fuel supply agreements with Sakunda (part of the Tafigura Zimbabwe operations), Engen Zimbabwe and Total Zimbabwe. However, less than a month after the government intervention fuel shortages resumed.
In December Zimbabwe Energy Regulatory Authority (Zera) acting chief executive officer Eddington Mazambani revealed to Parliament that the country had exhausted the $60 million worth of fuel imported end of November.
In Zimbabwe fuel is distributed mainly through the National Oil Infrastructure Company of Zimbabwe parastatal.
Zimbabwe's Fuel Needs
- Zimbabwe's petrol consumption at the time was 3.8 million litres a day
- Zimbabwe's diesel consumption was 4.1 million litres
- Petrol: 1.5 million liters a day
- Diesel: 2.5 million liters a day
Zimbabwe's Main Fuel Retailers
- Sakunda (49% owned by Puma Energy)
- Puma Energy (49.5% held by Trafigura)
- Engen Petroleum Zimbabwe
- Petrotrade (Pvt) Ltd (Government owned company formerly Noczim)
- Total Zimbabwe
- Zuva Petroleum
- Indigenous Petroleum Association of Zimbabwe (Ipaz)
- Trek Petroleum (Chaparrel Trading)
- Foreign Currency Shortage - Zimbabwe was currently experiencing a shortage in foreign currency and was therefore not able to procure enough quantities to satisfy demand. Fuel stations were required to sell fuel in Bond Notes but these bond notes were not easily convertible to forex by the banks. Banks, therefore, had to wait for forex allocations from the government.
- Sabotage - There were allegations that some fuel business people and Zanu-PF factions, were deliberately causing a shortage for political objectives against the Emmerson Mnangagwa administration.
In September of 2018 to October, the shortages of fuel resulted in some long-winding queues at some fuel stations around the country with the Harare being the hardest hit due to a higher volume of vehicles. Between October and November, the RBZ released US$17 million in two weeks to critical sectors but admitted that the figure was not enough to meet the country’s foreign currency needs. The government took strides to curb the fuel shortages through banning the use of Jerry Cans to buy fuel, it was believed that the government's move was meant to control hoarding of fuel. Joram Gumbo said jerrycans were promoting hoarding, and he threatened to revoke licences of petrol service stations found using them.
Those using tanks, drums and jerrycans – all those forms of containers should stop and we are sending out inspectors and the Zimbabwe Republic Police, If anybody is going to be found maybe overcharging or using drums, they will have their licences withdrawn. We are not going to allow that
In Mid November of 2018, the fuel shortages resurfaced again as evidenced by the long and winding ques at fuel stations.
In an interview with The Herald, Energy and Power Development Minister Joram Gumbo said the unending queues for fuel are evidence that there is indeed fuel in the country.He said fuel companies are getting 4,1 million litres of diesel per day and 3,8 million litres of petrol a day.
Effects of the shortage
In Manicaland Province, some ambulances in the province were reportedly grounded due to the crippling fuel shortages. In Bindura it was reported that motorists went for about two weeks without fuel between late November and early December. Victoria Falls, experienced acute fuel shortages and black market dealers took advantage of the crisis to sell the commodity at exorbitant prices.Hotels Association of Zimbabwe (HAZ) chairperson Farai Chimba said the shortages were similar to killing the goose that lays the golden egg and were likely to impact on tourism revenue during the festive season.
The shortage resulted in the growth of the black market where the fuel was being sold at higher prices. In areas like Chitungwiza, a litre of petrol was being sold for between $5 Bond note to $ 7 Bond note depenf=ding on the supply and demand situation of the day.
The price of busfare rose, in Bindura it was reported that commuter omnibuses were charging $1.50 Bond note over a 3km distance. Chitungwiza to town rose from a $1 Bond note to $2 Bond note over a 27 km distance
Today's Top Pindula News2018-12-13T21:31:08Z
- No More Fuel In Zimbabwe- ZERA Acting CEO ⋆ Pindula News, Pindula News, retrieved: 7 Dec 2018
- Fuel shortages ground tour operators - NewsDay Zimbabwe, NewsDay Zimbabwe, retrieved: 7 Dec 2018