Starting on September 6th, 2024, Zimbabweans will no longer be able to purchase unblended petrol at service stations nationwide. This follows a new government directive mandating the sale of blended fuel only. The move, while aimed at potentially reducing the nation’s fuel import bill, has sparked debate among motorists and industry experts alike.

For many Zimbabweans, including seasoned mechanics, unleaded fuel has long been considered superior. The prevailing belief is that it delivers better engine performance and increased mileage per litre. This perception has driven up demand for unblended fuel, resulting in a price premium at service stations. We at Zimpricecheck have observed that unblended petrol often retails for around US$1.59 per litre, with some outlets charging as high as US$1.61. In contrast, blended fuel, typically E10, is available for around US$1.42, with a ceiling price of US$1.50 at most service stations.

It’s important to note that all petrol sold in Zimbabwe is unleaded. However, the distinction lies in the blending process. Many service stations have been selling unblended unleaded petrol simply as “unleaded petrol”, creating confusion in the market.

While the government has not explicitly stated its rationale behind the ban, foreign currency conservation appears to be a key driver. Zimbabwe consumes an estimated 5 million litres of fuel daily, with petrol accounting for 2 million litres. This translates to a significant expenditure in foreign currency. By mandating the blending of petrol with locally produced ethanol, the government seeks to reduce reliance on imported fuel and potentially lower the overall fuel import bill.

Some experts suggest that Zimbabwe’s actual fuel consumption might be even higher than official estimates. Historical data from the 1990s indicates daily consumption levels of 6 million litres per day. Considering the ongoing power cuts that have forced businesses to rely heavily on diesel-powered generators, coupled with the growth of the manufacturing sector, it’s plausible that current consumption surpasses previous figures. For instance, retail giant Pick N Pay alone consumed approximately 2 million litres of diesel in 2023. While companies like Econe, with their extensive base station network, also contribute to diesel consumption, there’s a noticeable trend towards solar energy adoption across various sectors.

Unlike previous policy shifts, the government has provided a seven-day grace period for the transition to blended fuel, allowing motorists time to adjust.

The official statutory instrument outlining this change is as follows:

Statutory Instrument 150 of 2024

[CAP. 13:22]

Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) (Amendment) Regulations, 2024 (No. 6)

IT is hereby notified that the Minister of Energy and Power Development, after consultation with the Zimbabwe Energy Regulatory Authority, has, in terms of section 57(1) of the Petroleum Act [Chapter 13:22], made the following regulations:—

These regulations may be cited as the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) (Amendment) Regulations, 2024 (No. 6).

Section 3 of the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) Regulations, 2013, published in Statutory Instrument 17 of 2013, is repealed and substituted by the following—“3. (1) These regulations shall apply to all unleaded petrol imported into Zimbabwe.(2) Subsection (1) shall come into operation seven days from the date of publication of these regulations.”.

Supplement to the Zimbabwean Government Gazette dated the 30th August, 2024. Printed by the Government Printer, Harare.

Potential Implications

Here are some potential implications we at Zimpricecheck foresee:

Fuel Prices: These will probably remain the same for Blend Petrol
Foreign Currency Savings: If the government’s strategy works as intended, we could see a reduction in foreign currency expenditure on fuel imports. There is already a shortage of foreign currency though so don’t go around expecting the rate to go down because of this.
Local Ethanol Industry: The ethanol industry in Zimbabwe is likely to see a boost from this decision, as demand for their product will increase significantly.
Consumer Adaptation: Despite by some vocal complains most motorists will just shrug and move on to buy blend without a fuss.

Frequently Asked Questions

What is E10 fuel?

E10 fuel is a blend of 90% unleaded petrol and 10% ethanol. Ethanol is a biofuel typically derived from maize or sugarcane.

Will blended fuel damage my car?

E10 fuel is generally compatible with most modern vehicles. However, it’s advisable to consult your car’s manufacturer or owner’s manual for specific recommendations.

Q: Will blended fuel affect my car’s performance?
A: While some believe unblended fuel offers better performance, modern vehicles are designed to run efficiently on blended fuels. Regular maintenance and proper driving habits are more crucial for your car’s performance.

Q: Will this change result in cheaper fuel prices?
A: It’s uncertain at this point. While blended fuel is currently cheaper, the elimination of unblended options might not necessarily lead to price reductions.

Q: Is blended fuel safe for all vehicles?
A: Most modern vehicles can safely use E10 blended fuel. However, if you own a classic or specialized vehicle, it’s advisable to consult with a mechanic or the manufacturer.

Conclusion

Most motorists will just shrug and move on to blended petrol, ethanol producers will see a slight bump in business and the sun will rise again in the east, just as it always has. We don’t see much impact on foreign currency though given the shortages in the market.

See the latest fuel prices here.