Zimbabwe resumes petrol blending to reduce fuel price

VCG

The Zimbabwean government has resumed blending petrol with ethanol as part of a raft of measures aimed at reducing fuel prices and increasing the availability of the commodity.

This comes amid uncertainty in fuel supply in the country due to instability in Eastern Europe.

Addressing a post-cabinet media briefing on Tuesday, Information Minister Monica Mutsvangwa said the cabinet had approved a number of strategies to stabilize fuel prices.

The measures include resuming petrol blending at E10 from April 25 this year, which is expected to go up to E20 by end of this month.

The government had scrapped the mandatory blending of petrol in January this year.

Mutsvangwa said the blending of petrol at El0 had resulted in the reduction of petrol price by 0.04 U.S. cents per liter while blending at E20 will reduce the price by 0.07 U.S. cents per liter.

Mutsvangwa said the government was making efforts to improve the strategic fuel reserve, with 40 million dollars worth of fuel having been procured in the last six months.

“The intention is to maintain at least a 30-day stock cover, which, at the current consumption levels, translates to 150 million liters. This fuel would be released onto the market to plug supply gaps or to stabilize prices,” Mutsvangwa said.

She said the government intends to set up a fuel price stabilization fund to cushion consumers from sharp increases in fuel prices.

“Discussions are ongoing on the modalities and timing of the fund. The government will come up with measures to stabilize and ensure a consistent supply of fuel,” she said.