Zimbabwe restricts unblended gasoline sale to convers foreign currency for importing fuel

(MENAFN) On Friday, the Zimbabwean government announced a ban on the sale of gasoline that is not blended with ethanol, a move aimed at conserving the foreign currency needed for importing fuel. The new regulations will come into effect seven days from the date of the announcement. This decision follows consultations between Minister of Energy and Power Development Edgar Moyo and the Zimbabwe Energy Regulatory Authority (ZERA), reflecting a strategic shift in the country’s fuel policy.

The initiative to mandate gasoline blending with ethanol was originally introduced in 2011. The primary objectives were to reduce the dependency on foreign currency for fuel imports, support the local sugarcane industry, and foster job creation. By blending gasoline with ethanol, Zimbabwe sought to achieve these goals while simultaneously promoting domestic agricultural products and addressing economic challenges related to fuel imports.

Despite the mandate, some service stations continued to offer unblended gasoline, often marketing it as unleaded to cater to vehicles that require or prefer it. This practice has led to inconsistencies in fuel availability and has been a point of contention among motorists whose vehicles are specifically designed to run on unblended gasoline or who have a preference for it over the ethanol-blended variant.

The new regulations aim to address these issues by eliminating the sale of unblended gasoline altogether. This move is expected to streamline fuel distribution, ensure compliance with the blending mandate, and further support the country’s efforts to optimize the use of its foreign currency reserves while promoting local industries.

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