Government has swiftly moved in to avert possible fuel crisis following instabilities being witnessed in Eastern Europe because of the conflict between Russia and Ukraine.
Addressing the media after the 13th Cabinet session yesterday, the Minister of Information, Publicity and Broadcasting Services, Senator Monica Mutsvangwa said that Government was making efforts to improve the Strategic Fuel Reserve, with US$40 million worth of fuel having been procured in the last six months.
“Cabinet wishes to inform the nation that the instability in Eastern Europe has increased the uncertainty in fuel supply. Government has, therefore, increased efforts to improve the Strategic Fuel Reserve, with US$40 million worth of fuel having been procured in the last six months. The intention is to maintain at least a 30-day stock cover, which, at the current consumption levels, translates to 150 million litres. This fuel would be released onto the market to plug supply gaps or to stabilize prices,” said the Minister.
Minister Mutsvangwa added that the price of petrol was expected to drop by US$0.07 per litre as Government plans to increase petrol blending from E10 to E20 by end of May 2022.
The Minister informed the nation that Government was set to come up with measures to cushion motorists from high fuel prices.
“Government intends to set up a Fuel Price Stabilisation Fund, to cushion consumers from sharp increases in fuel prices. Discussions are on-going on the modalities and timing of the Fund. Government will come up with measures to stabilize and ensure a consistent supply of fuel,” added the Minister.
At the beginning of this month, President Emmerson Mnangagwa informed that the Government was implementing a cocktail of measures to ensure that fuel prices do not spiral out of control in the face of global value chain disruptions. He informed the nation that he directed the reduction on fuel by US 13 cents and diesel to zero-rated, duty-wise.