Page 17 - DMEA Week 22

DMEA FUELS DMEA

Lebanese Army takes action to clamp

down on fuel smuggling to Syria

LEBANON THE Lebanese Army has located and removed a fuel bound for Syria were stopped by the Army
pipeline used for smuggling fuel across the coun- at the border.
The smuggling problem try’s northern border into Syria, it reported in a The Army’s announcement comes after
is exacerbating statement last week. Prime Minister Hassan Diab’s government
Lebanon’s economic Fuel smuggling has become rife at the Leb- sought to take credit last month for clamping
woes. anese-Syrian border, as both countries contend down on border smuggling. But opposition
with economic crises. A reported on Lebanese politicians claim that security forces are mostly
television on May 9 estimated that up to $400mn turning a blind eye to the problem, with only a
of subsidised fuel was being trafficked across the handful of arrests having been made for smug-
border to Syria each year. Syria, meanwhile, is gling activities.
contending with serious fuel shortages as a result Lebanon’s fuel imports doubled last year,
of sanctions restricting oil imports and falling despite the country’s economic malaise, with
domestic crude production. smuggling seen as the primary cause. The coun-
Around 30 metres of pipes had been confis- try subsidises fuel, wheat and medicine imports,
cated on the Lebanese side of the border,” the with the Beirut-based UMAM research group
Army said. estimating that this fuel can be sold at three to
“This step comes as part of the continuous four times the price in Syria.
efforts by the Army to combat smuggling at the Syria’s oil ministry has taken recent steps to
Lebanese-Syrian border and to [control the bor- scale back fuel subsidies. While this is seen as a
der] using all available methods,” it said. prudent measure given the country’s dwindling
No further details on the operation were pro- finances, it is likely to exacerbate the problem of
vided. Earlier in May trucks laden with illegal fuel smuggling. ™

Court gives small Zimbabwean

fuel retailers import rights

ZIMBABWE SMALL fuel retailers in Zimbabwe are now ZERA had earlier wanted to restrict fuel
permitted to import fuel, after the country’s licences to only companies with 25 filling sta-
There are calls high court overturned regulatory rules that tions or more, before lowering the number to
for greater market led to only eight major companies receiving 15. It also charged firms up to $2mn for these
liberalisation. the right. licences.
The Zimbabwe Energy Regulatory Authority Zimbabwe has been struggling for years
(ZERA) earlier this year issued import licences with crippling fuel shortages and the IPAZ and
to Total Zimbabwe, Glow Petroleum, Ram others argue that greater market liberalisation
Petroleum, Genesis Energy, Vivo Energy, Zuva would help alleviate the problem. A lockdown
Petroleum, Sakunda Petroleum and Redan imposed in late March to combat the corona-
Petroleum. However, it barred companies with virus (COVID-19) pandemic led to a collapse
fewer than 15 filling stations from bringing fuel in fuel demand. But with measures now being
in from abroad. eased, shortages have resurfaced.
ZERA argued that these smaller players had ZERA confirmed in late May that the country
little impact on national supply and therefore it was having difficulty procuring fuel supplies.
was not necessary to provide them with import “The current fuel shortages are attributed to
rights. The regulator’s decision was challenged logistical glitches experienced in the fuel pro-
at the high court by the Indigenous Petroleum curement system by oil companies,” the regula-
Association of Zimbabwe (IPAZ) and the Direct tor’s acting CEO, Eddington Mazambani, told
Fuel Imports (DFI) group, however. The licens- local press on May 24. “This has created a gap in
ing process lacked transparency, set unfair bar- the supply chain, resulting in the demand sur-
riers and encouraged monopolistic practices, the passing supply.”
groups argued. “Supplies are, however, expected to improve
Following the court’s verdict, smaller fuel soon due to measures which have been put in
retailers can now bring in fuel temporarily under place,” he noted, without elaborating on what
licences issued last year. these measures were. ™

Week 22 04•June•2020 www. NEWSBASE .com P17