The Ministry of Energy and Power Development in consultation with the Zimbabwe Energy Regulatory Authority (ZERA) and in terms of Section 57 of the Petroleum Act [Chapter 13:22] has gazetted new regulations to control the price at which LPG is sold by procurement and retail licensees.


Section 4 & 5
ZERA shall publish the maximum price at which LPG licensees shall sell LPG. Section 4(3) prescribes a formula in the First Schedule which ZERA shall use to calculate the retail price.


The Formula
The breakdown to calculate the Retail Price shall be as follows:


Total Landed Cost + Taxes & Levies + Administrative Costs + Procurement Margin (8%) + Retail Margin (12%) = Final Price


Final Price + VAT                 = Retail Price


Section 4(6) –  The retail price for LPG must be displayed by the retailer at all times in a prominent place at the retail place of business and this price must correspond with the price on the measuring unit.


Section 4(7) – The failure to display the retail price or charging customers more than the maximum price shall lead to the licencee being guilty of an offence and liable to pay a fine not exceeding Level 9 or imprisonment not exceeding 5 years.


Section 6
All LPG licensees are required to issue all customers with receipts after every purchase which shows the price, quantity and total sale. In terms of Section 6(2), the failure to issue a receipt will result in the licensee being guilty of an offence punishable through the payment of a fine not exceeding Level 5 or imprisonment not exceeding 2 years.


Section 7
No person shall withhold LPG meant for retail with no good reason. In terms of Section 7(2), anyone who is found withholding LPG by ZERA will have their premises shut down pending them submitting whatever their reason for withholding the LPG was.