By Costa Nkomo
The Zimbabwean government has banned the sale of unleaded petrol in a bid to retain the National Oil Infrastructure Company’s (NOIC) monopoly in the fuel industry as the state entity struggles to secure foreign currency.
The ban, effective from September 6, 2024, was announced through Statutory Instrument 150/2024. This move is aimed at strengthening the country’s biofuels policy and encouraging the use of locally produced ethanol.
Zimbabwe Energy Regulatory Authority (ZERA) Chief Executive Officer Eddington Mazambani explained that the decision addresses the declining uptake of ethanol blending, which had been compromised by loopholes in existing regulations.
“Since 90 percent of our fuel is supplied through the pipeline, blending ethanol with unleaded petrol could result in significant forex savings and contribute to greening our economy. Ethanol production also plays a role in carbon capture within the country,” Mazambani told CITE.
Mazambani noted that private players, aside from NOIC, had exploited legal loopholes to import unleaded petrol by road, bypassing the pipeline and undermining the ethanol blending initiative.
“People began importing petrol by road and blending it independently, leading to a significant drop in the demand for ethanol. We have now tightened the regulations to ensure full adoption of the biofuels policy.”
The new regulations, detailed in the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) (Amendment) Regulations, 2024 (No. 6), effectively repeal and replace Section 3 of the previous regulations. These changes, mandating the blending of imported unleaded petrol with ethanol, will take effect seven days after their publication.
The government argues that the ban will reduce reliance on imported fuel by promoting ethanol blending, thereby decreasing the need for foreign currency to import unleaded petrol.
Additionally, the policy supports environmental sustainability, as ethanol production is considered a more environmentally friendly option compared to fossil fuels, helping to reduce greenhouse gas emissions.
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