Fuel retailers urged to renew licences

Source: The Herald – Breaking news.

 

ZERA revealed that close to 1,000 applications for petroleum product retail licenses have been received this year, which is almost equal to the total number of fuel stations currently licensed by the energy sector regulator.

Mutsawashe Mashandure-Herald Correspondent

The Zimbabwe Energy Regulatory Authority (ZERA) has reminded those selling fuel and liquid petroleum gas that they must renew their licences on time and those with licences that expire at year end should be applying now for the licences for next year.

Both those whose licences expire at year end and those planning on entering the sector next year need to apply now.

Wholesale licence’s cost US$9 200, urban retail licences US$500 and rural retail licences US$200.

Production licences for ethanol and blending are priced at US$200.

Applicants had to adhere to the submission guidelines to ensure a smooth renewal process, stated the authority.

Wholesalers must have suitable capacity as approved by ZERA and provide proof of project funding.

“To qualify for collaboration with the Authority, applicants must demonstrate either a minimum importation of 10 million litres of combined product in 2024 or any year from 2021 to 2023, or provide evidence of ownership of at least three retail sites through title deeds.

“Furthermore, applicants must manage a minimum of three retail sites via leasing agreements with site owners, all in the applicant’s name.”

Recently, ZERA revealed that close to 1,000 applications for petroleum product retail licenses have been received this year, which is almost equal to the total number of fuel stations currently licensed by the energy sector regulator.

It stated that the high demand for fuel station licenses is being driven by the growing need for petrol and diesel, as well as Government incentives promoting investment in the sector. The country requires at least 3 million litres of petrol and 4 million litres of diesel daily.

Demand continues to rise due to an economy growing at an accelerated pace, driven by the expansion of the mining, agriculture, and infrastructure development sectors.

It is also believed that the development of new urban settlements and the opening of new roads have created more strategic locations for the establishment of service stations and the fact that the business is conducted almost entirely in foreign currency has been cited as a reason for the proliferation of service stations and overtrading in some suburbs and along some routes.