Fuel imports hit $1 billion in 8 months

ZIMBABWE’s fuel imports rose to $1 billion between February and September from about $700 million during the same period last year as the country experienced increased demand for fuel.
According to the Confederation of Zimbabwe Industries’ (CZI) latest economic update, demand for fuel has surged in the country due to increased consumption by both the public and various economic agents.
“Our fuel imports have significantly risen compared to last year’s figures. From February to September, the country had imported diesel worth about $718,9 million and petrol to the tune of about $351 million.
This represents an increase by 21 percent and 25 percent for diesel and petrol respectively,” the CZI said.
Over the last two months, Zimbabwe experienced intermittent fuel supplies, which were blamed on foreign currency shortages.
The Zimbabwe Energy Regulatory Authority (ZERA) attributed the shortage to logistical challenges. ZERA said the country’s economic revival had seen a rise in demand for fuel.
The energy consumption pattern is regarded as a fairly good indicator of the country’s economic performance.
Notably, 52 percent of fuel is used in motor vehicles while 25 percent is consumed in commercial production. Seven percent is consumed by other forms of transport and boats take up one percent.
CZI said the country’s top 10 imports for the month of September were diesel, petrol, electrical energy, crude soya bean oil, broken rice in bulk, medicaments, durum wheat, motor vehicles (over $55 million), ammonium nitrate and herbicides.
“Our top 10 exports were semi-manufactured gold, nickel mattes, flue-cured tobacco, nickel ores and concentrates, ferro-chromium, chromium ores, industrial diamonds, articles of jewellery and parts of silver, platinum and ginned cotton. Our exports remain predominantly minerals and raw agricultural produce, and this points to the need for strengthening value chains for value addition and beneficiation,” said the CZI.
The country has however been experiencing a trade deficit. The country’s national statistical agency (Zimstat) said a persistent trade deficit has been magnified by unstated foreign trade activity.
In recent years, Zimbabwe has run systemic trade deficits due to a decline in exports, mostly as a result of ailing in