Fuel Stations Boom & Bubble-ZERA Warns Against Illegal Doorstep Deliveries

By Shingirai Vambe

HARARE – The rapid mushrooming of fuel stations across Zimbabwe’s cities and suburbs has raised more questions than answers, with the Zimbabwe Energy Regulatory Authority (ZERA) now battling to plug gaps in licensing and curb illegal practices that have increasingly tied the industry to corruption, money laundering, and the laundering of illicit finances.

In its latest statement, ZERA dismissed reports circulating on social media and in sections of the press that certain individuals and companies had launched doorstep fuel delivery services. The regulator made it clear that Zimbabwe does not have a license category for mobile fuel dispensing, nor does it permit trucks to retail fuel directly to consumers at their homes, workplaces, or other undesignated points.

“For safety reasons, fuel is only dispensed into vehicle fuel tanks from licensed retail stations, or into suitably designed, constructed and licensed storage tanks at large consumer premises,” ZERA said, emphasizing the dangers associated with the uncontrolled decanting of fuel into vehicles and equipment in uninspected environments.

Despite these pronouncements, a deeper crisis lurks within the sector. Over the past few years, Zimbabwe’s central business districts and residential suburbs have witnessed an unprecedented proliferation of fuel stations. In Harare, Bulawayo, Mutare, and even smaller towns, it is no longer unusual to see service stations set up on every second street corner.

The surge, while superficially presenting as increased investment and improved access to fuel, has been dogged by allegations of corruption. Questions swirl around how licences are granted, who is behind the sudden influx of operators, and whether the regulator is adequately monitoring the authenticity of these businesses.

Economists and transparency advocates argue that the industry has become a convenient channel for laundering illicit money, with some fuel stations operating as “fronts” for the movement and legitimization of dirty cash.

“The problem is not just about whether ZERA approves doorstep deliveries or not. It’s about how we suddenly have so many fuel stations in a collapsed economy, where legitimate investors are struggling. Someone is clearly using fuel as a vehicle for other interests,” said economic analyst, Gift Mugano to The PostOn Sunday.

In its statement, ZERA insisted that there is no shortage of retail fuel services in urban centers to justify the introduction of doorstep deliveries. Instead, it encouraged entrepreneurs to invest in containerized fuel stations in rural and underserved areas, in line with the recently gazetted standard ZWS1119:2024 – Guidelines to Establishing Containerized/Portable Fuel Retail Stations in Rural and Remote Areas.

Yet the suggestion itself raises further questions. Why has the regulator failed to stem the proliferation of fuel stations in towns and cities, while rural areas remain grossly underserved? Why has the licensing process failed to prioritize need, instead concentrating infrastructure in oversaturated markets where returns are higher and oversight weaker?

Critics say these are the loopholes that facilitate corruption and abuse. “The system is designed to favor the powerful and politically connected. That’s why you’ll find fuel stations every 200 meters in Harare, but villages in Mashonaland or Matabeleland still have no access,” said former Mbizo Legislator, Settlement Chikwinya.

Dzivarasekwa Member of Parliament, Edwin Mushoriwa told this publication that, “Beyond licensing issues, the fuel industry in Zimbabwe has long been linked to money laundering. Fuel importation is often dominated by a handful of politically connected individuals and companies who use their influence to secure preferential access to foreign currency, only to divert the proceeds into parallel markets or opaque financial dealings,” he said.

The mushrooming of stations is seen by many as part of this laundering process, where businesses can declare fuel sales while actually channeling undeclared funds through their operations. it is again seen as a washing machine for corrupt individuals who get dirty money and wash it through exchange of clean product and money from the Citizens of Zimbabwe.

With billions of dollars reportedly lost annually to corruption in Zimbabwe across multiple sectors, the energy industry stands out as one of the most fertile grounds for illicit financial flows.

ZERA’s renewed effort to plug regulatory loopholes, particularly through media advisories and technical guidelines, signals an acknowledgment of the rot. However, many stakeholders argue that statements alone will not solve the problem. Stronger enforcement, genuine transparency in licensing, and coordinated oversight with financial regulators are urgently needed.