Ethanol fuel blending saved the country an estimated $26,5 million in 2017, representing 2,65 percent of the import bill, the Zimbabwe Energy Regulatory Authority (ZERA) has revealed. Zimbabwe introduced mandatory fuel blending in 2011 in a bid to reduce its huge fuel import bill, which hovers slightly above $1 billion annually.

Currently, Green Fuel, a partnership between the State-owned Agricultural and Rural Development Authority and Macdom and Rating Investments owned by business tycoon Billy Rautenbach, is the sole registered ethanol supplier.

Green Fuel produced a total of 78,2 million litres of ethanol in 2017 up from 38,6 million litres in 2016 blended with 467 391 414 litres and 413 328 777 litres of petrol in the respective years.

“The estimated forex (foreign currency) substituted by ethanol blending for up to November 2017 was $24,5 million litres. The total forex is estimated to reach $26,5 million by December,” ZERA acting chief executive officer Edington Mazambani told The Financial Gazette via email.

Zimbabwe’s fuel import volume for 2017 stood at 1,1 billion litres, down from 1,2 billion litres the previous year. Government raised the blending threshold to 15 percent of ethanol mixed with unleaded petrol last year.

Mazambani said the blending ratio was this month reduced to five percent owing to low ethanol production experienced during the rainy season. “The blending ratio is no longer at 15 percent and is now at five percent instead with effect from 12 January 2018, decreasing from the previous level of 10 percent,” he said.

The Minister of Energy and Power Development has the prerogative to review the blending threshold in line with prevailing supply. Mazambani attributed the low supply to heavy rains which he said “affects harvesting of sugar cane and thus affect ethanol production”.-Fingaz