RTGS fuel is there, but is consumed by the Govt, says Minister

RTGS fuel is there, but is consumed by the Govt, says Minister

Energy and Power Development Deputy Minister Magna Mudyiwa has revealed that the government is consuming most of the fuel that is sold in RTGS.

Most motorists in the country have been wondering why there are hardly any service stations that sell fuel in local currency and yet they get forex on the auction system.

A quick survey around Harare has revealed that fuel is sold mostly in US dollars at a time when most people are paid in local currency.

However, answering a question in the Senate from Chief Nhema who wanted to know which garages accept the Zimbabwean dollars for fuel, Magna Mudyiwa said they are there, but the fuel is consumed by the government.

‘’The issue of fuel being sold in our local currency, the RTGS, there is fuel which is being sold in RTGS in some service stations. It is not all service stations that are selling fuel in RTGS but there are some service stations that are selling in RTGS, though the fuel for RTGS is very limited.

‘’The quantities which we are getting for RTGS fuel are not much. The quantities are below one-third or one quarter compared to the fuel which is being imported through the DFI arrangement.

‘’If we are saying DFI, we mean that service stations are using their funds to import their fuel and they sell their fuel in United States dollars so that they will be able to buy another lot of fuel again to sell. The service stations which sell their fuel in RTGS get their money through the RBZ.’

‘’So, the amount of money which we are getting from the RBZ is very little compared to the DFI money. That is why we see RTGS fuel is very limited and the fuel for RTGS is servicing Government departments, hospitals, councils, rural and urban councils, and parastatals like ZESA, CMED, and others.

‘’Many Government departments are getting RTGS fuel, and they are getting the little fuel which we get per month. That is where this fuel is going. So, for those few service stations which provide RTGS fuel, it does not last long because it is sold out in a short period of time,’’ said Mudyiwa.

57 Service stations selected for RTGS fuel

According to the deputy minister, there are about 57 service stations that have been selected to sell RTGS fuel in the country. However, not all of them have been getting the fuel so far under the program.

She said that is the reason why the fuel stations are currently not visible to the public.

‘’We have selected 57 service stations, with ZERA AND NOIC, working together with RBZ under the Ministry so that these 57 selected service stations sell their fuel in RTGS. These service stations must meet other conditions which ensure that the fuel is monitored.

‘’To date, we are not able to get fuel to deliver to all these 57 service stations – that is why you assume that there are no such service stations.

‘’There is little fuel found and sold in RTGS, that is what I can say for now. These service stations which sell fuel in RTGS must be monitored by the National Fuel Management System which is a computerised system and monitors how many litres of fuel have been received when it reaches the service stations, and the levels must be monitored from a remote-controlled office.

‘’That system has not started working properly and we are not getting enough fuel under RTGS. That is the problem, but plans are there to work towards that,’’ she said.

RTGS fuel is there, but is consumed by the Govt, says Minister