Page 9 - DMEA Week 11 2022

DMEA FUELS DMEA

Mnangagwa orders review of fuel

taxes to ensure price stability

AFRICA ZIMBABWEAN President Emmerson Mnan- the Russia-Ukraine war for the increases. It
gagwa has ordered a review of fuel taxes to announced on Saturday that a third price rise
ensure stability in the prices of the commodity. was averted following government intervention.
In an opinion piece published in the latest Fuel prices in Zimbabwe are among the
issue of the state-owned Sunday Mail, the presi- highest in southern Africa, including in coun-
dent said he intervened late last week to prevent a tries such as Zambia, which is further away
third fuel price increase in a week as the southern from ports in Mozambique and imports its fuel
African country continues to suffer the adverse through its eastern neighbour. According to
impact of the Russia-Ukraine war. ZERA, government taxes contribute about 26%
“We are looking at the whole duty frame- to the retail fuel price.
work to cushion our economy from shocks and The increase in the price of fuel is likely to fur-
pressures from galloping fuel prices,” he wrote. ther push the cost of other commodities as well
“There is no need for panic. I have already as inflation up from 66.1% recorded in February.
directed the Ministry of Energy and Power Finance Minister, Mthuli Ncube, in an
Development to review and reduce duty and sur- engagement with local business executives last
charges on fuel so that the pump prices of petrol week said his ministry had lowered tax on fuel
and diesel remain manageable.” from 12, 7% to 8, 7% since September 2021.
Last Monday (March 7), the pump price of “We could lower it further but it’s difficult to
diesel and petrol was on average $1.39/litre but get it to zero because we have pressures as gov-
had risen to $1.75 by Friday. The Zimbabwe ernment such as civil servants’ salaries and so
Energy Regulatory Authority (ZERA) blamed forth,” the Sunday Mail quoted him as saying.™

TERMINALS & SHIPPING

Iran to build its hybrid

tanker, launches LNG tender

MIDDLE EAST THE National Iranian Tanker Co. (NITC) has LNG tender
ordered the construction of an Aframax-type In anticipation that the nuclear deal will be
tanker from a local manufacturer, Shana news renewed, Iran has announced tenders for gas
agency reports citing NITC CEO Hossein Shiva. liquefaction projects, according to Shana.
An Aframax vessel is an oil tanker with a State-owned National Iranian Oil Co.
deadweight between 80,000 and 120,000 metric (NIOC) announced that it is accepting bids for
tonnes. The term is based on the Average Freight the construction of small LNG terminals until
Rate Assessment (AFRA), a tanker rate system April without specifying the size, location or
created in 1954 by Shell Oil to standardise ship- construction time needed for the projects.
ping contract terms Iran has three large, incomplete LNG pro-
“The Iranian Shipbuilding and Marine jects, South Pars LNG with a capacity of 10mn
Industrial Complex (ISOICO) in Bandar Abbas tonnes per year with Total, Persian LNG with a
received an order for the construction of an Afra- capacity of 16.2mn tonnes with Shell and Iran
max-type tanker. The contract will be signed in LNG with a capacity of 10.8mn tonnes. Most of
the near future,” he was quoted as saying. the work on the latest project was completed, but
Shiva noted that the capacity of the new vessel the resumption of US sanctions in 2018 meant
will be 113,000 tonnes, it will be the first domes- that the German Linde was unable to deliver
tic hybrid vessel for Iran, which will be fuelled equipment to Iran.
by LNG and fuel oil with a low sulphur content. As noted by Argus, in 2019 the country
The head of NITC added that the tanker will produced 244bn cubic meters of gas, but with
be built according to the modern standards of high consumption, only 20bn cubic metres was
the International Maritime Organization (IMO). exported, which went to Turkey and Iraq.™

Week 11 17•March•2022 www. NEWSBASE .com P9