Zera urges fuel operators to renew licenses ahead of 2025 deadline

Mutsawashe Mashandure Suburban Correspondent

The Zimbabwe Energy Regulatory Authority (ZERA) has advised fuel and LPG operators whose licenses expire on December 31, 2024, to begin the renewal process for 2025.

In a notice, ZERA highlighted that all operators are reminded that according to Section 29 of the Petroleum Act, it is illegal to procure, sell, or produce any petroleum product without a license issued by the Authority.

“ZERA hereby notifies fuel operators whose 2023 operating licenses expire on December 31, 2024, to start submitting applications for the 2025 licenses. New entrants should also begin submitting their applications if they intend to operate in 2025,” the statement reads.

The fees for various license categories have already been established.

The wholesale license is set at US$9 200, while retail licenses range from US$500 in urban areas to US$200 in rural regions. Production licenses for ethanol and blending are priced at US$200 each.

“All applicants must adhere to the submission guidelines to ensure a smooth renewal process,” stated the Authority.

The Authority urged all wholesalers to 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,” ZERA noted.

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 three million litres of petrol and four million litres of diesel per day, respectively.

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.