by BERNARD CHIKETO
IN A BID to stamp out the hazardous and widespread trade in black-market fuel, the Zimbabwe Energy Regulatory Authority (ZERA) is taking a novel approach. Instead of just cracking down, it is trying to out-compete the illegal vendors.
The agency has introduced a new national standard, ZWS1119:2024, which paves the way for the establishment of containerised, portable and low-cost fuel retail stations.
This initiative, adopted under General Notice 1425 of 2025, is a direct response to a critical gap in the country’s energy infrastructure. For years, rural and remote areas have been starved of formal fuel outlets, creating a fertile ground for a dangerous informal market.
The new policy is a central pillar of the government’s National Development Strategy 1 (NDS1), which prioritises expanding essential services to underserved communities.
The liberalisation of the fuel market is intended to stimulate the formal sector’s growth, and these modular stations are its latest frontier.
“The adoption of containerized fuel retail sites will bring convenience, promote rural development, and reduce fuel shortages in remote areas,” Hugh Sagonda ZERA Licensing Officer said recently. The authority argues that by providing a legal, safe and affordable alternative, it can undermine the economic rationale for the illicit trade while simultaneously powering local economies.
Energy poverty and the informal economy
The persistence of illegal backroom and roadside fuel vending is a symptom of a deeper energy crisis in Zimbabwe.
The country’s electricity grid is notoriously unstable, with the capital, Harare, experiencing power outages as frequently as 20 days a month. The national electricity gap is around 1.2 gigawatts (GW), enough to cover only 60% of peak demand.
This chronic power shortage has forced households, farms and businesses to turn to diesel generators to keep operations running. However, the cost of running these generators is high, at $0.35-0.5/kWh.
For rural areas far from formal fuel stations, the cost and logistics of obtaining diesel have been prohibitive, creating a perfect environment for illegal vendors to flourish—despite the obvious safety risks.
A scalable solution for rural growth
The new containerised stations are designed to be a scalable and economically viable solution. Their modular nature means they can be deployed and relocated as needed, bringing fuel access directly to agricultural zones, small-scale mining operations and cottage industries. ZERA specifies that these portable sites must be positioned away from highways, existing standard fuel stations, and public gathering places to ensure safety.
The authority believes this will do more than just sell fuel; it will create mini-economic hubs in previously underserved communities. Reliable access to fuel is expected to reduce transportation costs, boost agricultural productivity and enhance rural social services.
Transparency in a volatile market
Alongside the new infrastructure standard, ZERA has been emphasising its commitment to transparency in energy pricing.
At a recent media workshop in Mutare, officials clarified that fuel prices are prescribed under the Petroleum Act and guided by Statutory Instrument (SI) 12 of 2023, which outlines the current pricing formula. The authority sets maximum prices, though retailers are permitted to sell at lower rates.
For electricity, ZERA uses the Rate of Return (ROR) model, which allows utility companies to recover operational costs while earning a reasonable return.
“Adjustments can also be made midway if major cost drivers change significantly from the original assumptions,” the authority explained.
Whether this market-led solution can fully extinguish the dangerous black market remains to be seen.
It will depend on the swift and widespread rollout of these new stations. However, by attempting to solve an issue of safety and access with a tool of economic development, Zimbabwe’s energy regulators are trying a more sustainable, if ambitious, path.
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