The fuel supply situation in the country is soon going to improve as the National Oil Infrastructure Company (NOIC) is set to enter into an agreement with Nigeria’s JC Crusader Global Limited (JCGL) to supply 7.4 million litres of diesel every month for the next five years.
A source who spoke to this publication said that the Reserve Bank of Zimbabwe (RBZ) has already authorised NOIC to enter into a fuel supply deal with JCGL and this will boost fuel supply in the country.
“The RBZ has already instructed NOIC to enter into a fuel supply contract with JCGL of Nigeria for the supply of over seven million litres of diesel every month for the next five years. The contract is worth US$5 million of fuel per month and is backed by a Letter of Credit guaranteed by NOIC,” said the source.
According to the same source, the fuel from this deal will be sold in local currency to lessen the burden on the motoring public that has been facing predicaments in purchasing the US dollar fuel. The source added that RBZ has instructed NOIC to apply due diligence when dealing with JCGL and ensure that the Procurement Authority of Zimbabwe (PRAZ) approves the deal.
The same source added that the fuel from this deal will be priced based on the High on PlatAsia Pacific/Arab Gulf Exworksat, the period of purchase initiation + US$0.29 /litre premium. The desired pump price will be equivalent to US$1.20 per litre. The price will be exclusive of all taxes in Zimbabwe and the taxes will be borne by NOIC.
Economic analyst Tafadzwa Chimombe said that the Direct Fuel Import (DFI) is important as it will ensure fuel security in the country.
“The DFI is important as it will ensure that our local service stations do not go dry. The DFI has proven to be a success in the past as it has ensured that the nation has fuel supply security. This deal is commendable as it shows government’s commitment in improving the fuel situation in the country,” said Chimombe.
In recent months, fuel supplies in the country have generally been stable since the Government allowed companies with free funds to import the commodity and sell using the currency of their choice.