Tinashe Makichi
HARARE – The Zimbabwe Energy Regulatory Authority (ZERA) issued 580 fuel dealership licences for retail, procurement and production in the first quarter of 2018.
During the period under review, the regulator issued 55 procurement licences, 513 retail licences, 12 production or blending licences and one wholesale license.
ZERA chief executive engineer Gloria Magombo told the Business Times that ZERA issues fuel dealership licences to different operators in accordance with the Petroleum Act.
“ZERA issues fuel licences to different operators in accordance with the Petroleum Act and these include production/blending licences which authorizes the licensee to construct, own, operate and maintain facilities for the production of petroleum products. The procurement licence authorizes the licensee to purchase fuel for the purpose of reselling it in bulk to one or more licensees.
“Wholesale licences authorize the licencee to purchase bulk petroleum products from any procurement licencee and production licencee. The retail licence authorizes the licensee to supply petroleum products to customers. As stated, holders of procurement fuel licences procure fuel products from the international market which they sell to wholesalers or retailers of fuel in the country,” said Magombo.
On allegations of fuel price distortions in the market, ZERA said prices prevailing in the market are regulated by Statutory Instruments 80 and 100 of 2015 which empower the authority to set maximum prices which every operator has to comply with.
However, Magombo said ZERA has a compliance monitoring team which conducts price surveillance at all the service stations across the country.
She said failure by fuel retailers to comply to set maximum prices leads to issuance of a Compliance Order which should be complied with within 30 minutes.
“Failure to comply with the Compliance Order leads to the site being sealed in the presence of police officers. Litigation commences thereafter, which may result in forfeiture of the fuel, or charging of a fine, or both,” said Magombo.
