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“This law allows an individual to procure a maximum of 2,000 litres of fuel for own use but some individuals are now taking advantage of the law to start up their own (illegal) fuel businesses.”

Brighton Gumbo, Business Reporter
UNLICENCED fuel and gas dealers risk imprisonment of up to five years or a fine of $600 or both as the Zimbabwe Energy Regulatory Authority (Zera) cracks the whip on illegal operations in the energy sector.

Zera chief executive officer, Gloria Magombo, had no kind words yesterday as she warned those found on the wrong side of the law risk being raided and arrested.

Illegal buying and selling of fuel in car parks and on roadsides is rife in Bulawayo and other major cities as well as on major highways, despite associated risks.

Magombo said a team from the authority, the police, local authorities and the Environmental Management Agency (EMA) has been put in place to weed out illegal operators.

She told fuel dealers and members of the public that compliance with set regulations was not an option as she blamed illegal dealings for causing damage to the environment, rampant fire incidents and resultant loss of life.

“We’re cracking down on the unlawful operations of illegal fuel and gas suppliers throughout the country,” said Magombo.

“Municipalities and the Environmental Management Agency will arrest anyone caught on the wrong side of the law. If the dealers have been allocated the working space by council but fail to meet our minimum requirements, that will result in shut down or closure of that particular operation until their houses are put in order.

“The Petroleum Act provides that where a violation has been committed, a person is liable to payment of a fine not exceeding level 9 ($600) or imprisonment not exceeding five years or both.”

Magombo said the crackdown would not have any sacred cows as the government seeks to restore sanity in the energy sector and protect licensed operators.

She said the authority was lobbying for the repeal of Statutory Instrument 171:2005 that provides for the control of petroleum products’ prices.

“We’re currently lobbying the government to repeal SI 17:2005, which was promulgated to alleviate a shortage of petroleum energy in the country,” said Magombo.

“This law allows an individual to procure a maximum of 2,000 litres of fuel for own use but some individuals are now taking advantage of the law to start up their own (illegal) fuel businesses.”

She said the SI has created a loophole, mainly in border towns such as Beitbridge where illegal fuel and gas dealers were taking advantage of the falling rand against the US$ to procure fuel cheaper and sell it to customers without adhering to the required standards.

Magombo said Zera was also lobbying the government to review other statutes such as SI 154 of 2001, which focuses on Customs and Excise (general regulations).

“We’re also working with the ministry to review licence fees for EMA, local authorities, fire brigade for the petroleum energy suppliers,” said Magombo.

The meeting was attended by scores of fuel and gas dealers from Bulawayo who also took the opportunity to air their concerns over the regulation of their businesses.

Participants complained that illegal players compromised quality as some dilute petroleum products.

Others said the pricing of gas should be regulated by the government to protect consumers.

Suppliers asked the government to harmonise its licencing system as they complained over the multiplicity of regulators, which erodes their profits.