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Energy regulator orders ethanol blending
15/08/2013 00:00:00
by Roman Moyo
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THE Zimbabwe Energy Regulatory Authority (ZERA) has, with immediate, effect introduced E5 mandatory blending of anhydrous ethanol and unleaded petrol at levels of 5 percent ethanol and 95 percent unleaded petrol.

This follows the licensing of Green Fuel (Pvt) Limited after its recent fulfilment of conditions set by Government. The ethanol production (mandatory blending) licence was issued to Green Fuel (Pvt Ltd) on 5 August 2013 in terms of the provisions of SI 17 of 2013.

In a statement ZERA chief executive Engineer Gloria Magombo said the introduction of mandatory blending follows the licensing of Green Fuel after meeting conditions set by Government.

“The E5 mandatory blending follows the licensing of Green Fuel (Pvt) Ltd on August 5 after its fulfilment of conditions set. The ethanol production, mandatory blending licence was issued in terms of the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) Regulations, Statutory Instrument 17 of 2013 and Petroleum Act Chapter 13:22,” she said.

“The public is advised that the quality specification of E5 fuel conforms to the Standards Association of Zimbabwe Standard: ZWS964 Part 1 for fuels and is based on internationally recognised quality standards for this type of fuel. E5 is therefore safe for use in all petrol powered engines.”

The energy regulatory authority has pegged the starting wholesale price of the ethanol produced for mandatory blending at US95c per litre for the first 90 days while the retail price of petrol is expected to come down by US3c per litre as a result of the blending.

“Wholesalers and retailers have up to sixty days to clear their current stock and make the necessary preparations after which all licensees in the Petroleum sector will be expected to comply with the provisions of SI 17 of 2013,” said Magombo.

ZERA has also fixed the starting wholesale price of the ethanol produced for mandatory blending at US$0,95c per litre for the first ninety days.

The regulator said it would review the price every three months. It is expected that the current retail price of petrol will come down by three cents per litre as a result of this blending.


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