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'No mercy for Zim fuel dealers'
21/03/2007 10:44 - (SA)
Harare - Zimbabwe's central bank governor has threatened a crackdown on fuel dealers for hiking prices by up to 200% recently in the face of growing shortages, a media report said on Wednesday.
"Service stations have really made life unbearable for us now," Gideon Gono is quoted by the state-run Herald newspaper as saying.
"As governor, I will not sit and read stories and hear reports of people being ripped off. Service stations should either behave or ship out. The law will take its course shortly. We have no sympathy for them."
Fuel prices in the beleaguered southern African country have rocketed in the last fortnight amid fresh shortages on the back of spiking inflation and a devalued currency.
Urban and long distance transporters have put up their fares by at least 150%, and petrol is now sold at garages for Zim$13 000 compared to Z$2 000 in January.
Diesel costs Z$15 000 a litre.
Although the official price of petrol and diesel is pegged at Z$335 and Z$320 respectively, no service station is selling at that price as it is not viable.
"The spirit of profiteering in this country is now as deadly as the disease(HIV/AIDS)," Gono said.
According to central bank figures, Zimbabwe requires 730 million litres of petrol and 900 million litres of diesel annually to operate at full capacity.
The country has faced serious fuel shortages since 1999, which the government blames on sanctions imposed on President Robert Mugabe and members of his inner circle at the time.
At the worst, gas stations went without fuel for months on end, buses and private cars were forced off the road and commuters had to walk or cycle to work.
Since controversial land reforms saw properties taken from white farmers for redistribution among landless blacks several years ago, sparking an economic downturn, inflation in Zimbabwe now stands at 1 730% and unemployment at 80%.
Mugabe recently launched a violent crackdown on leaders of the opposition Movement for Democratic Change.
- AFP
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Zimbabwe Special Report
