The Zimbabwe Energy Regulatory Authority (ZERA) says the price of fuel (diesel and petrol) have not changed and warned that defaulters will face the ‘full wrath of the law.’

This comes after the Reserve Bank of Zimbabwe yesterday announced that with immediate effect, removed the 1:1 foreign currency exchange rate for the procurement of fuel by Oil Marketing Companies (OMCs).

This means that OMC will be acquiring their fuel on the interbank foreign exchange market, which has not been quite efficient since its establishment this February.

The interbank rate was US$1: RTGS$3,4832 yesterday against about 1:5,5 on the forex black market.

“The Petroleum Industry is advised that the prices of fuel have not changed and operators are expected to continue selling into the market as is expected of them,” said ZERA acting chief executive Edington Mazambani today.

“Any operator found hoarding fuel will face the full wrath of the law. ZERA and the Zimbabwe Republic Police officers have been deployed in all the towns and cities to ensure compliance.”

Just yesterday RBZ governor Dr John Mangudya said the move to remove the 1:1 peg was aimed at promoting the efficient use forex and to “minimise and guard against incidences of arbitrage” in the economy.

“The Reserve Bank of Zimbabwe is pleased to advise the public that with effect from 21 May 2019, the procurement of fuel by the Oil Marketing Companies (OMCs) shall be done through the interbank foreign exchange market.

“There shall be only one foreign exchange rate to be used in the market for the importation of all goods and services. This means that the 1:1 exchange rate that was being used by OMCs for the procurement of fuel will be discontinued with immediate effect.

“The new position is necessary to promote the efficient use of foreign exchange and to minimise and guard against incidences of arbitrage within the economy,” he said.

He explained that banks must ensure there are no moral hazards in the operation of the interbank foreign exchange market.

“In this regard, all the foreign exchange requirements for banks for their own use that includes dividend payments, subscription fees, etc, would need prior Exchange Control approval for the proper conduct of the interbank foreign exchange market.

“Similarly, banks should discontinue twinning arrangements for their customers as this undermines the efficient operation of the interbank foreign exchange market,” said Dr Mangudya.