Harare – The pressure on the Reserve Bank of Zimbabwe to source and allocate foreign currency for fuel consumption on a monthly basis is enormous, Finance and Economic Development Minister Mthuli Ncube has said.

In May this year, the Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya announced plans to increase foreign currency allocations for the importation of fuel in the second half of the year to about $100 million per month as it steps up efforts to fight supply bottlenecks.

He said plans were afoot to increase the allocations to a cumulative monthly threshold of $91 million from June to October then further raise the amount to $101 million between November and December.

This was a considerable jump from the total figure of $88.8 million allocated to fuel importation for greater part May.

To curb this Ncube said one long term solution is to create a world-class “Regional Fuel Dry Port” out of the Mabvuku Loading Gantry and Msasa Depot fuel storage facilities.

“The vision for this inland fuel port will turn it into a vital regional fuel port that will serve neighbouring countries.

“An additional pipeline could also be built from Beira to the fuel storage facility in order to increase capacity.

“A strategy in this regard will be developed and new investors invited, so that in the end the multiple fuel importers can source their own foreign currency in the market.”

He added that the concept of a Dry Fuel Port is an important economic development issue which the The Ministry of Finance will work with Ministry of Energy and Power Development in order to realise the vision for a Dry Fuel Port for the Region.

Meanwhile, in his Monetary Policy Statement, Dr Mangudya said foreign truckers who purchase fuel in Zimbabwe in foreign currency.

“It has come to the attention of the central Bank that foreign truckers plying the Zimbabwean routes are involved in foreign currency arbitrage activities in Zimbabwe by trading in the parallel market of foreign currency and purchasing fuel in Zimbabwe at the official rate of exchange.

“In order to deal with this rent seeking behaviour, with immediate effect, all foreign truckers plying the Zimbabwean routes shall pay for their fuel in Zimbabwe in foreign currency.

“The same shall apply to foreign traders buying goods in Zimbabwe for sale in the neighbouring countries.”

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