Unlicensed Fuel Stations in Zimbabwe Face Major Crackdown Amid Rising Safety Concerns: ZERA

Zimbabwe’s energy sector is under intense scrutiny as unlicensed fuel stations across the country are facing closure. The Zimbabwe Energy Regulatory Authority (ZERA) has taken significant steps to shut down fuel service stations that operate without proper licenses, a move aimed at restoring regulatory standards and ensuring the safety of the public.

This clampdown comes at a time when concerns over unauthorized fuel supplies and unsafe storage practices are escalating, putting motorists and the broader community at risk.

ZERA’s actions are part of a broader regulatory push to bring order to the fuel industry. In the first half of 2024 alone, 73 liquid fuel stations and 136 liquefied petroleum gas (LPG) retailers were forced to cease operations for operating outside legal frameworks.

The stations in question were found guilty of selling fuel sourced from unapproved suppliers, while also failing to meet the necessary safety standards. This is not just a violation of the law but a direct threat to public safety, as the infrastructure at many of these illegal stations does not meet basic safety regulations.

Edington Mazambani, the CEO of ZERA, explained that the penalties for these operators, though significant, remain inadequate to act as a true deterrent. While the fines range from US$200 to US$700 for unlicensed liquid fuel operations and US$30 to US$600 for unlicensed LPG sales, Mazambani expressed dissatisfaction with these amounts.

ZERA is actively working with other government bodies to increase the penalties, ensuring that the fines are high enough to prevent repeated offenses.

ZERA’s regulatory efforts are supported by several government agencies. These include the Ministry of Energy and Power Development, the Attorney-General’s Office, and law enforcement agencies. The focus is on creating a more robust compliance environment, which will be achieved through both increased fines and the implementation of spot fines.

This system would allow for quicker enforcement actions and impose immediate penalties, reducing the lag time between offense and punishment. The proposed changes are designed to ensure that offenders face harsher consequences, which would hopefully lead to greater compliance within the fuel sector.

ZERA has employed various methods to identify unlicensed operations, including surprise inspections and market surveillance. The regulator has also partnered with law enforcement agencies and local authorities to conduct joint compliance checks, ensuring that fuel stations and LPG retailers are meeting safety standards. The problem with these unlicensed operations is not only their illegality but the fact that many obtain their fuel from unauthorized suppliers.

This increases the likelihood that the fuel being sold does not meet national safety and quality standards, thereby posing a significant risk to consumers, particularly vehicle owners who may experience damage as a result of substandard fuel.

Beyond safety concerns, the proliferation of unlicensed fuel stations highlights the growing challenge of regulating an increasingly saturated market. In 2012, Zimbabwe had only 299 licensed fuel stations. By 2023, this number had surged to 1,048, reflecting a significant expansion of the sector.

While this growth indicates a rising demand for fuel and energy resources in the country, it has also made it more challenging for regulators to ensure that all operators comply with the law. The rapid growth of fuel retailers underscores the need for more stringent oversight and better regulatory frameworks to manage the sector effectively.

The issue of unlicensed fuel stations and LPG retailers is not just about enforcing legal requirements. It’s also about ensuring that the public has access to safe, reliable fuel sources.

The fines imposed on illegal operators, while a step in the right direction, must be increased to reflect the severity of the risks involved. Fuel is a critical resource, and when it is distributed through unlicensed and unsafe channels, the consequences can be catastrophic.

To combat this, ZERA is strengthening its relationships with key stakeholders such as the Zimbabwe Revenue Authority (ZIMRA) and the Environmental Management Agency (EMA).

These partnerships are crucial in the effort to regulate the fuel sector more effectively. Joint compliance checks, inspections, and law enforcement collaborations are necessary to ensure that all fuel stations, both old and new, meet the required safety and infrastructure standards.

ZERA’s crackdown on unlicensed fuel stations is a necessary move to protect both consumers and the energy sector. By enforcing compliance and ensuring that all operators are licensed, the regulator aims to restore order in a rapidly growing and increasingly complex market.

It remains to be seen whether the proposed increases in penalties and the introduction of spot fines will have the desired effect, but for now, the message from ZERA is clear: illegal operations will not be tolerated.

This ongoing effort by ZERA demonstrates that while the challenges facing the energy sector are significant, they are not insurmountable. Stronger penalties, better enforcement mechanisms, and robust partnerships with government agencies are crucial steps toward ensuring a safe and regulated fuel industry in Zimbabwe.

The Zim Bulletin