Thandeka Moyo, Chronicle Reporter
The Government yesterday dispelled rumours that there is a fuel shortage in the country saying there is no need for motorists to hoard the commodity.

In a statement yesterday, Energy and Power Development Minister Simon Khaya Moyo said the situation is under control hence there is no need for panic buying. “The fuel supply situation in the country is a manifestation of market forces in the petroleum market at the international level. In 2017, the Organisation of the Petroleum Exporting Countries OPEC led by Russia agreed to cut oil production to clear the global glut of crude oil,” said Minister Moyo.

He said the Zimbabwe Energy Regulatory (ZERA) will continue to monitor the market to ensure compliance to regulated prices by oil companies.

“I want to assure the nation that there will be adequate fuel supplies throughout the country. The Government urges consumers not to panic or hoard petroleum products which may result in artificial shortages,” said Minister Moyo.

He said fuel prices had been affected by demand which rose by 22 percent for petrol and eight percent for diesel compared to last year.  “The Reserve Bank of Zimbabwe has been allocating an average of $10 million foreign currency per week to oil companies for fuel importation based on past consumption trends. However the forex allocations have not been revised to match the increase in consumption,” he said.

Minister Moyo said that the increase in fuel prices have also been necessitated by the movement in global crude oil prices. “This has seen the price of petroleum products increasing in the last month. Zimbabwe as a price taker has experienced fuel price fluctuations similar to the pattern shown by the international Freight On Board (FOB) prices.”

According to the Minister, a drop in pump prices also witnessed last month was a result of a temporary reduction in the crude oil prices.

@thamamoe