ZERA shuts door for fuel suppliers

ZIMBABWE Energy Regulatory Authority (Zera) has stopped some companies that have been supplying fuel in the country.

In a statement, ZERA Chief Executive Officer Addington Mazambani told the journalists on Friday that, they have licensed 34 more companies from a record of 130 entities that have been in operations

“As of yesterday (Thursday) we had received about 34 applications, which qualify to be issued with licences, and all the licences should be out by end of day today (Friday).”

“So, from tomorrow onwards those without licences will stop operations. But obviously there are cut off issues for those which had already ordered their fuel which is still in transit so we will have to cater for those,” Mazambani said

In March, Zera announced a revised set of requirements for oil importing companies, which include US$24 320 per annum licence fee, proof of ownership of three retail sites and proof of fuel imports of a minimum of 10 million litres per annum from 2016-2019.

Licences are renewed annually.

It has further announced that since the 2019 procurement licences were made valid in 2020, all companies which procured fuel in 2020 were required to pay $2 million exclusive of value-added tax by October 2021, failure of which licences would be cancelled.

The energy regulator has been embroiled in a bitter legal wrangle with indigenous fuel entities after announcing stringent licensing requirements last year which small players viewed as intended to promote bigger players in the sector.

Consequently the High Court ordered that 2019 licences be rolled over to 2020. Since last year, the energy regulator has been engaged in stakeholder consultations on the requisite licensing requirements.

Petroleum firms, under the banner of Direct Fuel Import Group and the Indigenous Players Association of Zimbabwe, last year rejected the “outrageous” conditions announced by Zera and accused the regulator of promoting the interests of big foreign operators.

Zera hiked oil importation licensing fees to $2 million a year, from US$23 000 in 2019, requires proof of ownership of at least 15 fuel stations and a performance bond of $30 million. The licensing regime included production of proof that potential licence holders had previously imported at least 10 million litres of fuel, much to the chagrin of indigenous players.

ZIMBABWE Energy Regulatory Authority (Zera) has  with immediate effect stopped some companies that have been supplying fuel in the country………..

In a statement, ZERA Chief Executive Officer Addington Mazambani told the journalists on Friday that, they have licensed 34 more companies from a record of 130 entities that have been in operations.

“As of yesterday (Thursday) we had received about 34 applications, which qualify to be issued with licences, and all the licences should be out by end of day today (Friday).”

“So, from tomorrow onwards those without licences will stop operations. But obviously there are cut off issues for those which had already ordered their fuel which is still in transit so we will have to cater for those,” Mazambani said

In March, Zera announced a revised set of requirements for oil importing companies, which include US$24 320 per annum licence fee, proof of ownership of three retail sites and proof of fuel imports of a minimum of 10 million litres per annum from 2016-2019.

Licences are renewed annually.

It has further announced that since the 2019 procurement licences were made valid in 2020, all companies which procured fuel in 2020 were required to pay $2 million exclusive of value-added tax by October 2021, failure of which licences would be cancelled.

The energy regulator has been embroiled in a bitter legal wrangle with indigenous fuel entities after announcing stringent licensing requirements last year which small players viewed as intended to promote bigger players in the sector.

Consequently the High Court ordered that 2019 licences be rolled over to 2020. Since last year, the energy regulator has been engaged in stakeholder consultations on the requisite licensing requirements.

Petroleum firms, under the banner of Direct Fuel Import Group and the Indigenous Players Association of Zimbabwe, last year rejected the “outrageous” conditions announced by Zera and accused the regulator of promoting the interests of big foreign operators.

Zera hiked oil importation licensing fees to $2 million a year, from US$23 000 in 2019, requires proof of ownership of at least 15 fuel stations and a performance bond of $30 million. The licensing regime included production of proof that potential licence holders had previously imported at least 10 million litres of fuel, much to the chagrin of indigenous players.