RBZ doubles forex allocation for fuel

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The Reserve Bank of Zimbabwe (RBZ) has doubled weekly foreign currency allocation on fuel imports to US$20 million in a bid to address the supply gap following a 20 percent rise in demand for the commodity.

Zimbabwe has in the past few weeks experienced full supply challenges on the back of a 20 percent rise in demand for the product.

The ZBC News is reliably informed that the weekly rise in fuel on board by one cent per litre on a weekly basis had exerted further costs to the importers.

A confidential document also revealed the rise in demand had resulted in the economy requiring 25 million litres per week from 20 million litres a week.

The trend created a supply gap as the US$10 million on weekly fuel imports was no longer sufficient as fuel firms required US$12.5 million.

In written responses to inquiries from ZBC News on Thursday, central bank Governor Dr John Mangudya said the fuel situation will be back to normalcy as the monetary authorities have with immediate effect doubled weekly forex allocations for the commodity imports.

Economists say the stable or improving economic performance is contributing to the increased demand and consumption of fuel.