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The effect of the fuel shortage on Zimbabwe
Zimbabwe Liberators Platform (ZLP)
June 24, 2003

Zimbabwe has been grappling with a fuel shortage since December 1999, long before the Parliamentary and Presidential elections. Obviously the shortage, which has become very critical in 2003, is caused by the acute shortage of foreign currency, the corruption and mismanagement at National Oil Company of Zimbabwe and policy paralysis at government level.

Why is the foreign currency in short supply? Economic recession and exchange rate controls have affected exports as there is no incentive to export while foreign currency inflows have dwindled. The volatile political situation and the distorted macro-economic fundamentals have also destroyed business confidence.

It is government's duty and responsibility not only to provide the answers to the crisis, but also to create a conducive environment which enables economic sectors such as agriculture, mining, industry, commerce, services, etc to generate enough foreign currency to meet the nation's requirements. Not much has been done on this respect.

And once the foreign currency has been generated, government should ensure that it is well managed for the benefit of the whole nation. But when government fails to discharge its responsibility or neglects its duty, the consequences on the nation are devastating:

1. Absolutely all economic activity has been adversely affected and curtailed.
2. Virtually all motorists waste billions of productive man-hours in fuel queues. Millions of leisure hours are also squandered.
3. The number of motor vehicles on the roads has been reduced, adversely affecting production in all sectors of the economy especially the delivery of goods and services.
4. The fuel crisis has given birth to a black market trade, forcing the price of fuel to shoot up. This has the effect of increasing the prices of goods and services as well as fuelling inflation now estimated at 300 percent.
5. Commuter omnibus operators, who have easy access to fuel, drain it from their motor vehicles and sell it at exorbitant prices. Desperate motorists and business people pay any price to acquire fuel as fuel attendants take advantage of people's misery and suffering.
6. The fuel crisis has put a heavy burden on the commuter. Transport costs now chew half of the average commuter's wages. And the public transport system has all but collapsed forcing commuters to spend long hours in queues. As a result, many commuters report to work late, leave home very early and arrive home very late. They are left with limited time for their families.
7. Farmers have been forced to substantially reduce tillage due to the shortage of diesel. This affects food security and agricultural exports which generate foreign currency.
8. Tourists have shunned Zimbabwe partly because of an ailing transport system and unavailability of fuel. Tourism is a big source of foreign currency.
9. Limited aircraft flights within the country and across the border have reduced local, regional and international business and trade.
10. Fewer motor vehicles are produced locally or imported because of reduced demand and the shortage of foreign currency. Who would buy a motor vehicle when fuel was critically short?
11. Local authorities in cities and towns cannot cope with collecting and disposing of refuse. A health hazard is looming.
12. Delivery of social services such as health, ambulance, funeral, fire fighting, etc has been curtailed.
13. Polluted fuel sold on the black market is costing motorists and businesses tens of millions of dollars in repairs and spares.
14. Motorists have been forced to stoop to quarrelling and even fighting over places in fuel queues. Some motor vehicles are damaged during jostling for limited fuel supplies.
15. People's lives have been endangered by unauthorised, unsafe and risky transportation and storage of petrol.
16. Government has condoned the selling of fuel to the public at above controlled prices in either local or foreign currency. As a result, fuel price controls announced by government are now meaningless.
17. Urban residents who have over the years depended on paraffin for cooking have had to rely on firewood, hence the destruction of the environment. Rural dwellers that have used paraffin for lighting now depend on candles or firewood.
18. Faced with the above problem, government should first and foremost concede that it has failed to solve the problem. Secondly, it should accept that the fuel shortage is part of a bigger crisis (political, economic, social and humanitarian). Thirdly, it should invite all stakeholders to a national conference in order to find a holistic solution.

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