LP gas companies on Govt watch list says Mthuli Ncube

LP gas companies on Govt watch list says Mthuli Ncube
LP gas companies on Govt watch list says Mthuli Ncube

LP gas companies on Govt watch list says Mthuli Ncube

Finance and Economic Development Minister Mthuli Ncube has told Parliament that companies that sell liquefied Petroleum (LP) gas are on the government’s watch and investigation list for abusing the forex auction system.

The companies are accused of getting foreign currency from the Reserve Bank of Zimbabwe (RBZ) auction system and yet they sell their gas in foreign currency.

Minister Mthuli Ncube was answering a question from Senator Morgen Komichi in the Senate.

Companies that benefit from the auction system are expected to sell their products in the local currency as a way of reducing economic pressure on the citizens, the majority of whom earn local currency.

Senator Komichi wanted to know why companies that sell LP gas are selling in foreign currency and what the government was doing about it.

In his response, Minister Mthuli Ncube indicated that they are working hard to plug every loophole that exists in the auction system.

He added that companies that sell LP gas are on the watch list that also contains fuel companies.

‘’Honourable Senator (Morgen) Komichi has raised a very important issue and I wholly agree with his observation, that again there are some shenanigans coming out of the gas companies as well.

‘’Very similar to the fuel companies, we have put them definitely on our watch and investigation list.  Again, we want to close that loophole where they access money from the auction in US dollars but then end up selling in US dollars when they should give the public relief and selling in Zimbabwean dollars.

‘’They are certainly on our investigation list,’’ he said.

Zimbabwe is currently facing power shortages due to challenges at Hwange Thermal Station and Kariba Power Station.

The shortages are because of constant breakdowns of the power plants which were mostly built in the 1970s.

This has seen ZESA instituting load shedding in most parts of the country, as a way of managing the little power that is there.

This load shedding which usually happens during the cooking hours has seen people resorting to LP gas as an alternative.

However, the companies that sell the gas recently increased their prices, a development that could spell doom for many citizens.

The use of Liquefied Petroleum Gas (LPG) is gaining momentum in Zimbabwe as an alternative source of energy. The product is widely used by consumers of various backgrounds from industrial, domestic, commercial and farmers

LP gas companies on Govt watch list says Mthuli Ncube

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