Govt begins process of blending diesel amid fuel cost pressures

ZIMBABWE has begun formal research and trials into blending diesel with ethanol, marking a potentially significant shift as the Government continues to implement measures to cushion consumers from rising fuel costs, reduce import dependence and shield the economy from global oil price shocks.

The trials, being conducted by Green Fuel Zimbabwe, are focused on determining the appropriate blending ratios, assessing compatibility with local vehicle engines and evaluating the long-term viability of ethanol-diesel fuel systems under local conditions.

The initiative comes as the Government intensifies efforts to expand domestic ethanol production through new sugarcane plantations in Mwenezi, Chisumbanje and Chiredzi in a broader push to strengthen energy security and reduce pressure on foreign currency reserves.

Officials say the move has been accelerated by sharp increases in global fuel prices linked to geopolitical tensions in the Middle East, which have pushed up the cost of diesel and petrol in Zimbabwe in recent months.

Ethanol blending involves mixing imported fuel with locally produced ethanol, which is generally cheaper than refined petroleum products sourced from international markets.

Increasing the ethanol component lowers the overall cost of fuel while reducing reliance on imports.

Zimbabwe has for years implemented mandatory ethanol blending for petrol, with the Zimbabwe Energy Regulatory Authority (ZERA) increasing the blending ratio from E5 to E20 last month.

In an interview with The Sunday Mail yesterday, Energy and Power Development Minister July Moyo said trials for diesel blending were underway, although the Government had not yet set implementation timelines.

“We have started experiments and these are being conducted by Green Fuel,” he said.

“At the moment, there are no timelines on when this will begin. However, as I have said, trials have begun and the results will then determine the way forward. The new sugarcane plantations in Chisumbanje, Mwenezi and Chiredzi will also help support the fuel blending projects.”

Minister Moyo said the programme could help temper rising diesel prices, which have sharply gone up following the United States and Israel’s war of aggression on Iran in February.

“This is actually a good initiative, as it helps lower the price of the commodity,” he added.

“When we shifted to the E20 from E5 in petrol, the price of the commodity decreased by US0,15 cents, basically reducing the price of the commodity.”

Under the previous E5 regime, petrol contained 5 percent ethanol and 95 percent imported fuel.

The shift to E20 substantially reduced the volume of imported fuel required.

Two weeks ago, ZERA announced that the price of blended petrol (E20) had dropped to US$2,08 per litre from US$2,23, while that of diesel marginally declined to US$2,09 per litre from US$2,11.

The regulator attributed the decline in petrol prices largely to the increase in ethanol blending levels from E5 to E20.

Economists say, however, that blending alone may not fully resolve Zimbabwe’s fuel pricing challenges.

Economist and executive director of Africa Economic Development Strategies Professor Gift Mugano said the authorities also needed to reform fuel procurement systems and broaden participation within the sector.

“The major contribution of the cost of the fuel, 80 percent contribution, is the cost of imported fuel plus shipment costs,” he said.

“So, before Government added the levies and taxes, our fuel price will be already more than regional prices in Zambia and Botswana, South Africa.”

Zimbabwe, Professor Mugano added, needed a more competitive fuel market with additional suppliers and more efficient use of existing infrastructure such as fuel pipelines.

Harare motorist Mr Takudzwa Hungwe welcomed the proposed diesel blending initiative.

“If it ensures that fuel costs and the cost of other goods and services remain stable, then it is a good move,” he said.

Globally, ethanol blending has largely been concentrated in petrol, with countries such as Brazil leading large-scale biofuel programmes aimed at reducing fuel imports and lowering emissions.

Only a few countries, notably Sweden, have implemented ethanol-based fuel systems for diesel engines through specialised blends such as ED95, mainly for buses and heavy transport fleets.

Other countries including India and South Africa have conducted pilot programmes or adopted broader biofuel blending frameworks, although ethanol-diesel blending remains relatively limited due to technical and engine compatibility challenges.