By Daniel Itai.
South Africa (News of The South) – Newly elected Mozambican President Filipe Nyusi and Zimbabwean President, Emmerson Mnangagwa have embarked on a bilateral agreement that will see fuel being transported from Beira to Harare via pipeline.
The agreement will see the volume of fuel increasing from 1.6 million cubic meters per year to two million cubic meters per year.
Carlos Mesquita who is Mozambique’s minister of transport and communication said, “the pipeline has the capacity of two million cubic metres a year and the current volume to Zimbabwe is 1.6 million cubic metres.
The difference of 400 000 cubic metres then keeps us in a position to think as quickly as possible how we can increase further the capacity of the pipeline.”
Zimbabwe has been facing a lot of fuel challenges over the past few months primarily due to the induction of the local currency in June.
This has made it difficult for suppliers of fuel to import the precious commodity due to the unavailability of foreign currency.
Two months ago the Zimbabwean government increased excise duty by 45 percent which ultimately resulted in fuel prices surging up.
Currently the prices of both petrol and diesel are pegged at just under $US1 for a litre. The bilateral move will likely ease the fuel shortages and stabilize the prices.
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