Zimbabwe releases $60 million for fuel but enough for only three weeks


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The government has released $60 million for fuel but this is enough for only three weeks, Deputy Information Minister Energy Mutodi said today.

The country has been experiencing an acute shortage of fuel over the past few days though Energy Minister Joram Gumbo has repeatedly assured the country that it has enough fuel.

Finance Minister Mthuli Ncube conceded that there was a tussle for scarce foreign currency but he said the fuel situation would improve in a few days.

Zimbabwe started experiencing fuel shortages shortly after the monetary and fiscal policy announcement of 1 October when the bond note and electronic money plunged against the United States dollar.

The government is under pressure to allow the bond note and electronic money to float against the United States dollar but Ncube, who initially supported the idea of the market determining the rate of the bond or scrapping it altogether, now argues that it has to continue to trade at par to preserve value.

Zimbabweans, especially pensioners, lost their entire savings during the hyperinflation of 2006-2008 and this is what the government is trying to avoid.

Ncube also raised duty on fuel with effect from tomorrow which is likely to see an increase in the price of fuel.

 

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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