Page 17 - DMEA Week 25

DMEA FUEL DMEA

Zimbabwe fuel prices spike after

dollar cap lifted

ZIMBABWE ZIMBABWEAN fuel prices have rocketed up greenback. Since March 30 it has had a fixed
two and a half times this week, the Zimbabwe exchange rate of ZWL25 per US dollar in place.
Energy Regulatory Authority (ZERA) said on After the first auction, the exchange rate closed
June 25, after the government removed a fixed at ZWL57.4 per US dollar.
exchange rate in place since March. US dollar scarcity has exacerbated fuel short-
The country last saw fuel prices rise so ages in Zimbabwe, which lacks any refining
quickly in January 2019, prompting violent capacity of its own and therefore imports all of
protests that resulted in 17 deaths at the hands its gasoline, diesel and other petroleum prod-
of security forces. Zimbabwe is going through ucts. However, higher prices should also curb
its worst economic crisis in a decade, strug- demand.
gling with high inflation and shortages of food Following a High Court ruling last month,
and medicine. small-sized fuel retailers are now permitted
The price of gasoline shot up to around to import fuel, but the dollar shortages make
ZWL71.6 ($0.25) per litre on June 25, while the acquiring supplies difficult. Zimbabwe has been
price of diesel came to ZWL62.8 per litre. blending its gasoline with ethane in an attempt to
Zimbabwe began weekly foreign currency save its foreign currency. But many motorists are
auctions on June 23 in an effort to allocate US concerned that the high blending ratio of 20%
dollars more efficiently amid a shortage of the will damage their engines. ™

Ethiopian fuel demand down

on pandemic

ETHIOPIA THE head of the Ethiopian Petroleum Supply imports. EPSE had originally planned to import
Enterprise (EPSE) noted last week that domestic 679 tonnes of diesel in the same three-month
Ethiopia has scaled petroleum product consumption had declined period, including 228 tonnes in March, 224
back imports in significantly as a result of the coronavirus tonnes in April and 227 tonnes in May, he said.
response. (COVID-19) pandemic. Instead, it imported 607 tonnes, or 210 tonnes
According to Tadesse Hailemariam, the CEO in March, 202 tonnes in April and 195 tonnes in
of EPSE, Ethiopia is currently consuming about May.
2mn litres per day of gasoline, 8.5mn lpd of die- Jet fuel imports sank even more dramatically,
sel and 1mn lpd of jet fuel. Before the outbreak, he noted. EPSE had been scheduled to take deliv-
he told The Reporter, consumption levels had ery of 220 tonnes of jet fuel during the March-
averaged 2.2mn lpd for gasoline, 9mn lpd of die- May interval, including 71 tonnes in March, 74
sel and 2.6mn lpd of jet fuel. tonnes in April and 75 tonnes in May. In the end,
He explained the lower consumption levels though, it imported only 29 tonnes of jet fuel in
were a result of the lockdown measures and March and then did not import any at all in April
the slowdown in economic activity. EPSE has or May.
responded to the shift by scaling back purchases “We used to bring two vessels of jet fuel
of fuel from foreign suppliers, he said. [per month],” Tadesse told The Reporter. “In
The state-run body had intended to import March, we had only one fuel tanker carrying
a total of 148 tonnes of gasoline between March jet fuel. In April and May, we did not order
and May, bringing in 50 tonnes in March, 49 for any shipment. We have been using the
tonnes in April and 49 tonnes in May, he said. jet fuel imported in March.” The country has
Instead, he stated, it imported 126 tonnes, or not needed to buy any more jet fuel because
45 tonnes in March, 39 tonnes in April and 42 the national airline, Ethiopian Airlines, has
tonnes in May. grounded 90 of its planes and is only operating
Tadesse reported a similar drop in diesel cargo flights, he said. ™

Week 25 25•June•2020 www. NEWSBASE .com P17