Diesel crisis hits commercial freight sector

Standing beside his heavily laden haulage truck, Agrippa Lusaba lifted a 20-litre jerry can to the lights of oncoming traffic in a what has become a familiar sign in fuel-scarce Zimbabwe. While petrol-engine cars with empty tanks have become a common sight along the roads, for the first time the country is facing an acute shortage of diesel, which means long-distance truckers like Lusaba are feeling the pinch. "I am delivering coal from Wankie Colliery Company to some tobacco producers in Manicaland. I should have delivered the load exactly two hours ago, but here I am, about 500 km from my destination. The tank is empty, and this load is stuck with me until I get fuel," he told IRIN, 80 km north of Zimbabwe's second city of Bulawayo. Last week the National Railways of Zimbabwe (NRZ) announced it was suspending its services between Bulawayo and Harare, Victoria Falls and Chiredzi, due to the worsening shortage of diesel. "We are unable to run the regular inter-city passenger train services because of the shortage of diesel. It's a pressing moment for the NRZ, because it comes just as government has ordered that we prioritise the movement of coal to the tobacco curing kilns in the producer areas. So the little diesel we are getting goes to such priority projects," said a ticket officer at the main Bulawayo station. Stranded passengers could be seen milling around the departure area with their luggage, pondering where to go next. Railway transport remains the cheapest mode of travel in Zimbabwe. The shortage of diesel has reportedly forced some commercial freight companies to ground their fleets. "We have pulled a number of our trucks off the road because there is no diesel, especially in areas around Bulawayo. Harare [the capital] is better because black market diesel is available. Bulawayo does not even have it on the black market," said Thulani Mbambo, a fleet manager with Zim-Zone Carriers, one of Bulawayo's leading cross-border trucking firms. "We have sister companies across the region but we cannot import fuel using their accounts anymore, for fear of contravening the foreign exchange rules. Besides, no foreign company is willing to guarantee a credit payable in Zimbabwe because of the economic uncertainties," said Mbambo. Other commercial freight managers contacted by IRIN said the shortage of diesel was most severe in areas around Bulawayo, which have relied on railway-fed fuel deliveries. Although in short supply, petrol is still available, but opposition economic analyst Eddie Cross said the fuel crisis was likely to worsen. "This crisis is a result of fear generated by the new foreign currency regulations. Fuel importers are now afraid of bringing in large quantities, as that would mean using large amounts of foreign currency at a time when the RBZ [Reserve Bank of Zimbabwe] is investigating and fining a number of companies over transactions in foreign currency. They have adopted a wait-and-see attitude, which may last until the crackdown is over," said Cross. "The shortage might even lead to an increase in public transport and road freight costs, as operators are sourcing fuel at black market prices," said Cross. An official of the Zimbabwe Rural Transport Organisation confirmed that bus companies had applied to the ministry of transport for an increase in bus fares to cover cost increases.