Innocent Sibonginkosi Ncube
A statement released by the Zimbabwe Energy Regulatory Authority (ZERA) seem to suggest that fuel may be bought with newly introduced currency, ZiG from the Pump.
The fuel regulator, ZERA, said this in a statement released to announce the latest fuel prices.
The announcement stated that fuel prices for the month of May was dropping from US$1.69 to US$1.58 for petrol. Diesel price dropped by US$0.02 from US$1.68 to US$1.66.
While the new prices have been announced, many fuel garages in Bulawayo were already selling the crucial commodity at lower prices.
Only a few fuel stations such as Total, Puma and Engen sell at the gazetted prices, as most small players sell at much lower prices. For example in the month of April when ZERA gazetted petrol price at US$1.68, small players were selling at a price as lower as US$1.46.
ZERA also announced ZiG prices with diesel selling for ZiG22.24 while petrol will be sold for ZiG21.15.
This seem to suggest that fuel may be bought with the ZiG from the Pump.
A fuel attendant scoffed at the ZiG priced fuel and stated that,
“As long we are getting our fuel from our suppliers in the US dollars, pay duty and other tarrifs in the US dollars, there is no way we will accept the ZiG for fuel.”
An expert in the energy industry who cannot be named as he works for government corrected the notion by ZERA.
“Announcing of fuel prices in local currency is mandatory my friend. ZiG is not buying fuel yet.
“Remember we had prices announced in the ZWL$ before, show me which garage sold fuel in that inflammation ravaged currency.”
He went on to say that already the ZiG is receiving a barrage of indications for its downward spiral, thus, for now no filling station will accept it for fuel.
In the meantime, Commuter omnibus operators in Bulawayo are not accepting the ZiG for fares.
Zanu-PF aligned Bulawayo Residents Association (BURA) chairperson Winos Dube sided with Kombi operators saying:
“It’s hard truth, but honestly what operators are saying is that we can embrace the ZiG, but if garages are not accepting the ZiG, where will they get the fuel for them to continue providing the service?”
Tshova Mubaiwa Transport Co-op chairperson Atlas Moyo, which is one of Bulawayo’s biggest transport co-operatives, told the Chronicle that they would want to accept ZiG but they may find themselves out of business.
“ZiG is now our national currency and accepting it must never be an option, however we find ourselves between a rock and a hard place as refusing it is sabotaging the government and accepting it is pushing ourselves out of business.”
Moyo suggested that the Government should have fuel stations that sell fuel in local currency where only registered operators can buy fuel so that the general public benefits from their salaries which are pegged in ZiG.
Effie Ncube a political analyst, had this to say of the ZiG being accepted at fuel service stations,
“The government is responding to immense public pressure, that came from every sector of society, that was questioning why the new currency was not going to be used to purchase fuel.”
He said that the government should have avoided this own goal in the first place, because it became the reason the general public and business not have confidence in the new currency.
“No currency should be limited to purchasing this or that no currency on earth is usable in certain industries and not in others. So this is a huge failure by the Reserve Bank.”
Meanwhile, Reserve Bank of Zimbabwe Governor John Mushayavanhu on Thursday, said it is advisable and in their best interest for fuel stations to start accepting ZiG.
Mushayavanhu reiterated his statement that tax returns will be 50 per cent in local currency come June-July and fuel dealers may then find it difficult to lay their hands on ZiG to pay taxes.
“We are in the multi-currency regime and nothing is stopping a fuel dealer from selling their fuel partly in ZiG and partly in other currencies.
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“If a fuel dealer is not selling the fuel in ZiG, they will soon find themselves in a situation whereby they will be looking for ZiG come June or July, to pay tax.
But the Governor is forgetting that the pararel foreign currency market is already ahead in terms of a better exchange rate for the ZiG. This is proved by the prevailing figures on the black market as well as the arrest of foreign currency dealers countrywide last week.
The arrest of these dealers proved that government is not serious of its stance to rid of the foreign currency black market. Less than 200 dealers were arrested countrywide with Bulawayo contributing a paltry 12 of those arrested yet the City of Kings and Queens boasts of over 1000 unregistered foreign currency dealers.
“No matter how the government tries to rid of Osiphatheleni, as long as the big gurus and government officials continue feeding the money onto the street, nothing will change.
“The same filling stations will buy the ZiG for the payment of their Taxes from the black market.” The government economics analyist suggested again.
“As long there is no enabling legislation to enforce selling of fuel in ZiG, no sane service station operator will sell the commodity as such just to pay Taxes.”
In the past, the government set up service stations that sold fuel in the local currency but the facility was abused by operators who bought fuel using local currency and sold it on the black market.
Whither Zimbabwe.
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