RBZ increases forex allocation to fuel companies

The Reserve Bank of Zimbabwe (RBZ) has increased foreign currency allocation to fuel companies from US$7 million to US$10 million weekly to ensure adequate availability of the commodity.

The perceived shortages of fuel on the market have prompted the central bank to increase foreign currency allocation to the industry with another US$3 million to ensure there is availability of the commodity.

The petroleum industry is one of the sectors which require foreign currency on a weekly basis though it does not directly generate foreign exchange but it is a critical sector for economic development.

RBZ Governor Dr John Mangudya said if there is any shortage of the product on the market it has to do with the logistical part of the industry as funds are constantly availed.

Dr Mangudya warned fuel companies against creating artificial shortage of the product for personal interests urging stakeholders against sending negative signals which are unwarranted.

In the first half of this year, the importation of fuel got US$376 million with electricity getting US$120 million while cash imports got US$140 million and the importation of fertiliser getting US$109 million.

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