By Stanley James, Business Editor
THE Zimbabwe Energy Regulatory Authority (ZERA) says the increase in mandatory blending of fuel will help sustain affordability of the commodity.
Cabinet this Tuesday approved an increase in the blending ratio of ethanol to petrol from 10 percent to 20 percent effective end of this month, citing the need to boost fuel reserves and ensure sustained affordability of the commodity.
“This blending is being done for a variety of reasons, and this is something that we are actually achieving by using a locally produced product. We are averting the dependence on foreign currency to import all the fuel requirements that we have for the country,” said Honourable Zhemu Soda, the Minister of Energy and Power Development.
In an interview with ZBC News in Harare this Wednesday, Zimbabwe Energy Regulatory Authority (ZERA) Chief Executive officer Eddington Mazambani explained the importance of the latest move.
“It is the right step that is being taken. We are really in full support of the initiative so that we can forge ahead in rebuilding strategic reserves of the commodity to sustain economic requirements,” he said.
Mazambani also dispelled the negative theories around blended fuel.
“It is just a myth, but in reality never have we experienced complaints but just remember, this is not for the first time. In fact, such a process has been in there for a long time,” he said.
Zimbabwe like any other economy across the world has not been spared from fuel price increases, owing to global economic or supply shocks due to geo-political tensions in Eastern Europe.