“Fuel is definitely in the country but it’s in bond belonging to fuel traders. It only becomes available to us when we pay foreign currency.“In terms of the fuel supply, you will see that there has been a considerable improvement in the past few days owing to improved supply,” Mazambani said.
The bonded warehouses also supply fuel to Zambia and Democratic Republic of Congo (DRC).
Zimbabwe is currently a net importer due to a number of production companies that have shut down over the years.
Though the process of supplying fuel and distributing it, was very clear, observers have argued that the sector was captured by cartels, who were monopolising the buying and selling of the product and smuggling it out of the country where it fetches a higher purchase price.
Energy deputy minister Magna Mudyiwa said the country had enough stocks of the product.
The RBZ governor John Mangudya told the Daily News on Sunday that the fuel situation was going to improve after they have addressed some of the crucial issues that will enable the country to import more fuel.
RBZ has been allocating foreign currency through L Cs to local companies for the settlement of their foreign debts including the importation of various products.
However, in a bid to improve the supplies and deal with fuel smuggling, the Reserve Bank of Zimbabwe (RBZ) last week instructed Zera to register all fuel service stations that had free funds to import fuel and sell the product in foreign currency.
However, Mangudya defended the licensing of the service stations to sale fuel in foreign currency, arguing that it would actually lessen the burden on the fiscus.
“The advantage is that we cut the import bill which is $500 million per month. Forty percent of which has been going to the fuel imports will go to the interbank.
Fuel was being sold in foreign currency at some undesignated service stations at a price between US$1,25 and US$1,50 per litre.