HARARE, April 4 (Xinhua) -- Zimbabwe's capital is facing fresh fuel shortages that have resulted in commuter omnibus operators hiking their fares.
Long winding queues of cars, commuter omnibuses and conventional buses have become the order of the day at few service stations that are selling the commodity.
Commuter omnibus operators have a habit of hiking fares each time there is an acute shortage of diesel on the market, arguing that they are forced to source fuel from the black market at exorbitant rates.
Although the country's forex position is expected to improve when the tobacco marketing season opens, this has not been the case as the marketing season, which opened two weeks ago, has started slowly as most farmers are still withholding their crop due to poor prices.
The country has faced intermittent fuel shortages over the past months due to foreign currency shortages.
Energy and Power Development Minister Joram Gumbo said Thursday that the current hitches in the fuel supply situation were due to the forex shortages which had been compounded by Cyclone Idai as more fuel was now being channeled for relief efforts in the affected areas of Chimanimani and Chipinge.
"The biggest problem is not about fuel, but provision of forex. We have facilities in place but those handling the finances have foreign currency challenges which were compounded by the cyclone disaster which happened recently.
"Resources and much fuel has also been going there," Gumbo said.
He said he had engaged the ministry of finance to expedite processes for mining firms with free funds to import their own fuel so as to ease demand for forex on the central bank.
He said although cabinet had already approved the move, a legal instrument was required to allow the companies to start importing own fuel.
He also said apart from price adjustments determined by free on board (FOB) prices at Beira, the government had no intention to increase the price of fuel.
The Zimbabwe Energy Regulatory Authority said this week that there will be marginal increases in FOB price beginning next week Monday, which will result in marginal increase in prices of fuel in the country.
