Suppliers get tough on
pre-payment, writes
Martin Rushmere
ROAD TRANSPORT companies in Zimbabwe are reeling from the national diesel shortage, with three in Harare alone having closed temporarily. Industry sources say that there will be shortages for at least the next three months.
Bass Transport, Waste Away and Drummond Transport have had to stop operations because they do not have enough fuel. Waste Away is one of the main waste removal firms in the city and growing piles of rubbish are testimony to what is happening.
In theory a rationing
system has been worked out, with manufacturing exporters and farmers being cut by 10%, transport operators 30% and petrol stations by 50%.
In practice there is complete chaos, according to motor industry officials, with haphazard deliveries and no-one getting their full allocation.
Foreign exchange is the root of the problem. Foreign suppliers will only deliver if they are paid first.
Inefficiency has compounded the difficulties. The main pipeline from Beira through Mutare to Harare is capable of holding 12 million litres and supplying 3.6 million litres a day at 90 percent capacity, compared with total national consumption of 4.2 million litres a day, of which 2.5 million litres is diesel.
The gap of 600 000 litres a day is made up of rail shipments from South Africa.
When diesel became short, an official of the bankrupt government oil
buying corporation, NOCZIM, ordered that diesel be pumped through the pipeline immediately. He did not realise that there was petrol in the pipeline already, and this had to be pumped out first before any diesel could come out, says an oil company executive.
There was a further hold-up when Lonrho, the owners of the pipeline, stopped pumping earlier this week because of an outstanding debt of about US$600 000. This was eventually paid by the government.
South African suppliers in particular are reported to be extremely tough on
pre-payment before delivery. According to banking sources in Harare, Engen is the most hostile to Zimbabwe because of a previous unpleasant experience with the government.
A year ago the government signed a contract for a consignment to be delivered by Engen, said the banker, and at the last moment pulled out of the deal because it said a cheaper consignment had come from Kuwait. The general feeling here was that a sweetener was paid by the eventual supplier.
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