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The Zimbabwe Energy Regulatory Authority (ZERA) has taken decisive measures by shutting down more than 70 unlicensed fuel stations suspected of sourcing petroleum products from unauthorized suppliers and failing to comply with regulatory standards.
This crackdown, which took place between January and July 2024, also led to the closure of over 130 liquefied petroleum gas (LPG) retail sites operating without the necessary licenses.
The regulatory body imposed fines ranging from US$200 to US$700 on unlicensed fuel retailers, while penalties for unlicensed LPG vendors ranged from US$30 to US$600.
The ZERA Chief Executive Officer Mr. Edington Mazambani stated, “Seventy-three liquid and 136 LPG retail sites have been closed and prosecuted for operating without the requisite petroleum retail licences from January to July 2024.”
He elaborated on the fines imposed: “The penalties have ranged from US$200 to US$700 for liquid fuels and US$30 to US$600 for LPG. The fines are based on the Petroleum Act of 2006 that provides the maximum fine as Level 9.”
However, Mr. Mazambani expressed concern that these penalties may not be sufficient deterrents. “ZERA feels the fines are low and is working with relevant Government agencies to make the fines stiffer and more deterrent to ensure that operators do not repeat the same offence,” he explained.
To enhance enforcement, ZERA is also developing a system for spot fines, which would expedite the process and introduce stricter penalties for violators.
The authority employs various strategies to identify unlicensed fuel stations, including impromptu inspections, market surveillance, and collaboration with law enforcement agencies. This comprehensive approach aims to ensure compliance and protect consumers from unauthorized operations in the fuel market.
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