The National Oil and Infrastructure Company (Noic) says it has reduced fees to transport oil through the Feruka pipeline with effect from January 1 this year as it seeks to increase utilisation of the facility.
Noic announced last year that it intended to reduce the pipeline fees from 8,05 US cents per litre to 6,5 US cents per litre.
Petroleum products are transported into Zimbabwe through the pipeline and stored at Msasa and Mabvuku in Harare for distribution to other Noic depots and customers.
Noic public relations officer Loku Tshaka said fuel imports by road and rail would go down following the reduction.
“Fuel imports by road and rail will go down preserving the country’s road infrastructure,” she said.
“Almost 100 percent of fuel imports will be through the pipeline.”
The reduction was also meant to increase the commercial attractiveness of the pipe to both local and regional customers.
Some countries in the region, which include Zambia, the Democratic Republic of Congo, Botswana and Malawi pick up some of their fuel from Zimbabwe but the volumes are still low.
Zimbabwe needs about 2,5 million litres of diesel and 1,5 million litres of petrol daily.
To discourage transportation of fuel by road, the Government in 2011 introduced a Fuel Pipe Line Levy of 4 US cents per litre on all fuel that is brought into the country by road.
The oil pipeline was built in 1966 and originally stretched from Beira in Mozambique to Mutare and was later extended to Harare.
The Government, through Noic owns 21 kilometres of the pipeline while Mozambique through the Companhiado De Pipeline Mozambique-Zimbabwe, controls the rest. NewZiana