Trade

Zimbabwe: Shortage of Liquefied Petroleum Gas persists due to irregular supplies from South Africa

Thursday, 17 December 2015 14:56

Following the declaration of force majeure on LPG exports by some major gas refineries in South Africa due to rationing of electricity to their plants and rising domestic demand, Zimbabwe is likely to be affected again by the shortage of Liquefied Petroleum Gas (LPG).

South Africa is the main supplier of LPG to Zimbabwe. The country’s demand is on the rise as a result of dominant power shortages. Most homes are now being force to use gas for cooking and heating as a substitute to electricity and wood. Experts have raised concerns on the consequences, if local exporters fail to come up with substitute suppliers.

The power situation in SA is almost similar to what is prevailing in Zimbabwe. As such, demand for LPG has also risen. There are also other factors such as bad weather and routine maintenance at Sasol, which have forced implementation of the force majeure. Sapref Refinery is also facing challenges while supplies to PetroSA, Chevron and Engen have remained erratic” an expert said.

In August, Zimbabwe had faced LPG shortages due to irregular supplies from South Africa, thereby causing a price hike. According to The Herald, a quick assessment carried out, had shown that some LPG wholesalers and retailers have no or limited stocks.

Several analysis have also revealed that LPG adds approximately 2% of the source of energy used by households in urban areas of Zimbabwe. But South Africa with LPG contributes about 2%, to the entire country. The execution of force majeure has also made South Africa increase supplies of LPG imports from Mozambique.

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