Q & A
HON. SEN. MAWIRE asked the Minister of Energy and Power Development to explain to the House what measures are in place to curb the rampant illegal selling of fuel in Mutare and the surrounding areas.
THE DEPUTY MINISTER OF ENERGY AND POWER DEVELOPMENT (HON. SEN. MUZENDA): Thank you Mr. President Sir. I would like to thank Hon. Sen. Mawire for asking the question to do with the rampant illegal selling of fuel in Mutare and other surrounding areas.
The Zimbabwe Energy Regulatory Authority (ZERA) conducted fuel retail sites inspections in Mutare as part of its mandate of monitoring and enforcing compliance of oil companies to Petroleum Sector Licensing Regulations.
ZERA noted an increase in illegal fuel retailing activities in Mutare town which was brought to the attention of the Ministry of Energy and Power Development. The proximity of the town to the Mozambican border where relatively cheaper fuel is smuggled into the country through illegal points of entry is a key driver of the illegal activities. In order to curb these illegal activities, ZERA in conjunction with ZRP Manicaland, carries out routine site inspections. ZERA site inspections in 2016 showed that 35% of the fuel retail sites operating in Mutare were unlicenced and unlicencable. Most of these operators were operating from former commercial and industrial sites with no clearance from Mutare City Council, Fire Brigade or EMA. ZERA inspections also showed that none of the sites were manned by suitably trained operators. The sites were given compliance orders to regularise their operations.
From April 2016 to January 2017, ZERA carried out several licence enforcement blitzes against illegal fuel operators in Mutare. By the end of 2016, ZERA had closed 14 unlicenced and illegal fuel sites and 24 illegal fuel operators had been sent for prosecution for operating without ZERA licences. Despite these enforcement efforts, the situation of illegal fuel retailing in Mutare continued to worsen as most of the illegal fuel dealers resort to removing their equipment and temporarily deserting the sites only to return later and continue operating after breaking ZERA seals.
In October 2016, the Ministry requested the intervention of the Ministry for Home Affairs to assist through its ZRP border control and ZRP Manicaland. The urgent intervention of the Mutare City Council through strong enforcement of city by-laws and the clamping down of operators setting up illegal fuel retail sites in undesignated areas was also sought by the Ministry through the Ministry of Local Government, Public Works and National Housing.
The Ministry also engaged the Ministry of Finance and Economic Development for their intervention through the speedy implementation of the cargo tracking system which will help in preventing the illegal offloading of fuel in Mutare. We are happy to note that this was implemented in January 2017.
ZERA in consultation with the Ministry of Energy and Power and Development is drafting Petroleum (Liquid Fuels Licensing, Inspections and Compliance) Regulations, 2017 which will go a long way in providing for dealing with illegal fuel vendors. The regulations also propose stiffer penalties for illegal fuel dealing.
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