Fuel consumption down in Q1, 2021

Harare, (New Ziana) – Zimbabwe’s fuel consumption was significantly down in the first quarter of 2021 compared to the same period last year owing to Covid-19 inspired movement restrictions, latest data shows.

Figures from the country’s energy regulator, the Zimbabwe Energy Regulatory Authority (Zera) shows diesel and petrol usage was down by a combined 150 million litres in the first three months of this year.

Diesel consumption declined to 163.05 million litres from 212.86 million litres while petrol slid to 104.73 million litres from 119.74 million litres.

Zera board chairman, David Madzikanda said the hard lockdown from January to March which was aimed at controlling the spread of the Covid-19 pandemic largely accounted for the decline.

“Last year the lockdown started at the end of the first quarter while this year we had a lockdown the whole duration of the first quarter and this resulted in the decline in fuel demand,” said Madzikanda.

A de-regulation of the sector, allowing those with free funds has allowed more players to join the fuel sector, addressing the challenge of shortages the country had struggled with for many years, Zera officials said.

This has however resulted in more service stations selling the fuel in foreign currency than in local currency.

“We have fuel that is financed via the auction, a limited amount of fuel so we expect that to be sold in local currency but the fact is the majority of the fuel is getting financed using free funds in United States dollars,” explained Zera board member Masimba Kambarami.

While availability has improved, there remains concerns on the component of high duties and taxes on fuel prices which according to Zera, makes the country’s at least 44 percent more expensive when compared with other countries in the region.

“It’s an issue we have raised with government, but it is really out of our control,” he said.

Madzikanda said the emergency of more players in the sector had brought in more competition.

“This is beginning to benefit customers by way of choice, by way of service quality and by way of price,” he said.

He said the regulator would soon introduce a service grading for fuel service stations which is almost the same used for hotels, judging them on the type of service they offer to customers.
New Ziana