ast Updated: Friday, 13 December 2002
Petrol pumps run dry
Herald Reporters
PETROL pumps ran dry throughout the country yesterday, amid shocking
revelations that the National Oil Company of Zimbabwe (Noczim) is contemplating
terminating its secure fuel deal with Tamoil Trading, a Libyan international oil
supplier.
Noczim is also pressing the Government for a fuel price increase, a move which
flies in the face of the price freeze announced by the Government to cushion hard
pressed consumers from high prices of goods.
The sole oil procurer is also being accused of hoarding fuel to cripple the
economy.
Impeccable sources in industry said Noczim was pushing for cash deals with other
international companies so as to profit from illegal foreign currency transactions.
Cash deals � apart from lining the pockets of Noczim, Reserve Bank of Zimbabwe
and Ministry of Finance and Economic Development officials � do not guarantee
secure fuel supplies for the country.
In fact, the ad hoc fuel arrangements are not only chaotic but will condemn
Zimbabwe to permanent fuel shortages.
Noczim signed an agreement with Tamoil last year to pay for fuel supplies in local
currency into a trust/collection account at the Commercial Bank of Zimbabwe on
behalf of the Libya Arab Foreign Bank and its syndicate of lenders.
The deal was renewed this year for another year.
Under the deal, Tamoil supplies 70 percent of the country�s fuel supplies.
It has become apparent that Noczim is now using British attempts to put pressure
on Libya to dump Zimbabwe, as a cover to move away from the Tamoil deal.
Industry sources said there was no justification for Noczim to undermine the
Tamoil deal which had stabilised fuel supplies in Zimbabwe.
Noczim purchases of fuel on a cash basis from other international firms, they said,
might derail the Tamoil deal as the Libyans would also demand cash upfront for
fuel supplies.
"The Libyans will rightly say if you can pay cash to others, why not to us," said
one of the sources.
Another industry executive said Noczim had expected the Government to
announce fuel price increases during the 2003 national budget.
"When that did not happen, Noczim resorted to the old trick of starving the market
of a commodity to force a price increase."
Fuel price increases would make nonsense of price freezes as all sectors would feel
the effect and demand price adjustments.
Noczim is also now causing chaos on the fuel market by creating a parallel market.
The emergence of the parallel market, industry officials said, has to be nipped in
the bud quickly before it is established.
One litre of petrol is now selling for between $800 and $1 000 on the black market.
Noczim is also resisting Government policy by continuing to supply more fuel to
multinational firms and not indigenous oil companies.
The Government has said that multi-national companies should procure their own
fuel with Noczim supplying the bulk of fuel to indigenous companies.
Most of these multinational firms are pulling out of farming areas to cripple the
operations of new farmers.
Industry yesterday described the fuel situation as desperate and said many
businesses had been grounded owing to the fuel crisis.
"We are spending most of our productive time in fuel queues," said Confederation
of Zimbabwe Industries president Mr Anthony Mandiwanza.
Energy and Power Development Minister, Cde Amos Midzi refused to comment
yesterday, saying he was concentrating on his work.
"Just watch tomorrow (today)," said Cde Midzi.
"I have decided that I would rather do my work than talk to the Press."
"I have had many calls from the Press, but at the moment I am not saying
anything."
Noczim chief executive Engineer Webster Muriritirwa has been declining to
respond to questions from the Press referring them to the Ministry of Energy and
Power Development.
Long queues at service stations, which had no petrol were the order of the day
yesterday throughout central Harare and outlying areas.
Diesel is however, available at most service stations in the country.
Motorists waited patiently at filling stations where there was no fuel in the hope
that deliveries could come soon.
Most of them expressed concern that the situation could spill into the Christmas
holiday and spoil the festive season.
"How can we plan ahead for the holidays when things are so bad," said Ms Elliah
Mudzamba of Waterfalls.
Mrs Cathrine Ngondo of Marimba Park said her relatives in South Africa were
planning to bring their own fuel from that country.
"They are concerned that if they do not do that, they may find themselves
stranded in Zimbabwe and fail to return to South Africa," said Mrs Ngondo.
Zimbabwe started experiencing fuel shortages at the end of 1999 because of lack of
foreign currency to purchase the commodity.
The fuel crisis forced the then Minister of Energy, Cde Enos Chikowore to resign
in February 2000.
The situation improved when the Government negotiated with Libya for the
supply of fuel in 2001.
The latest shortages were being blamed on Noczim, which is trying to destroy the
fuel supply chain that was secured by the Government.
~~~~~~~~~~~~~~~~~~~~~~~~
"Ivinicus factus sum veritabem diceus." ( I have become an enemy for speaking the truth ) St Paul!
~~~~~~~~~~~~~~~~~~~~~~~~
Mitayo Potosi
_________________________________________________________________
STOP MORE SPAM with the new MSN 8 and get 2 months FREE* http://join.msn.com/?page=features/junkmail
