Zvikomborero Parafini, H-Metro Reporter
Following the Government’s position on the new Foreign Exchange Auction system that will see the exchange rate changing every week, ZERA has resolved to change fuel prices every week.
ZERA’s Chief Executive Officer Eddington Mazambani revealed responding to a question by the chairperson of the Parliamentary Portfolio Committee for Energy and Power Development Joel Gabuza.
“Foreign currency exchange rate has got a large component on your pricing model, no Government has taken the position to be auctioning foreign currency every Tuesday, are we likely to see fuel prices changing every week and how are you going to manage a situation where there is a possibility of traders hoarding fuel waiting for when there is a higher price to sell it?” queried Gabuza.
“If you recall, we have had the exchange rate used for fuel differing from the one prevailing in the market, but if the auction exchange rate is going to be used to procure fuel then yes, we will be changing prices on a weekly basis.
“We have already made an amendment to the statutory instrument which established the pricing of fuel on a monthly basis to move back to weekly which we used to do before, and within the license conditions of the fuel companies, hoarding is illegal.
“There’s a lot of work to be done and we have engaged other security agents to assist us in terms of compliance work around service stations and depots. We intend to intensify our dipping commencing from Sundays into Tuesday late afternoon prior to the announcement of the new exchange rate.
“It brings in challenges where people will hold on to the product to sell at a much higher price,” said Mazambani.