Fuel companies are by law required to comply to the dual pricing that was put in place last month, Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya has said.
This comes as most fuel companies have unilaterally decided to sell their fuel in United States dollars.
Last month, the Zimbabwe Energy Regulatory Authority (ZERA) announced new prices for petrol and diesel, while indicating that fuel sellers could now dually price the commodity.
The price of petrol per litre rose to
$71.62 from $28.96 while diesel will cost $62.77 from $24.93.
But fuel could also be bought in hard currency, with prices set at US$1.28 and US$1.09 per litre for petrol and diesel respectively.
Lack of compliance to the dual system has compelled the authorities to intervene by way of the law.
“Oil Marketing Companies and retailers of petroleum products are also required to display, quote or offer prices for petroleum products in Zimbabwe dollar and in foreign currency as required by law,” said Dr Mangudya in a statement today.
He added that fuel companies that sell in US dollars should bank their hard currency.
Most service stations have only been accepting hard cash, which risks diversion of the foreign currency.
“All foreign currency realised from the sale of petroleum products should be
banked in the domestic foreign currency accounts which shall be subject to monitoring by the Bank’s Exchange Control Division and the Financial Intelligence Unit.
“Banking of sales proceeds will assist the efficient replenishment of petroleum products in the market.”
The apex bank has also said all other retailers and service providers who are not complying with dual pricing system are falling foul of statutory requirements.
“Pursuant to the Bank’s press statement of 17 June 2020 directing providers of goods and services to display, quote or offer prices for such goods and services in Zimbabwe dollar and foreign currency at the ruling market exchange rate as determined by the foreign exchang auction, a significant number of business entities have taken heed of this requirement.
“Regrettably some business entities have not complied with the moral suasion directive.
“With the amendment of the law now having been effected through Statutory Instrument 185 of 2020 published on 24 July 2020, the law will now take its course in respect of non-compliance,” said the governor.
“Individuals and entities are reminded to bank cash received from the sale or provision of goods and services as required by the Bank Use Promotion Act [Chapter 24:24].
“The requirement to bank cash extends to foreign currency received in respect of sale or provision of goods and services. Banking of cash will enhance circulation of money within the economy.”