US embassy cable - 03HARARE873

UNCLAS HARARE 000873 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/S 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
PASS USTR FLORIZELLE LISER 
TREASURY FOR ED BARBER AND C WILKINSON 
STATE PASS USAID FOR MARJORIE COPSON 
 
E. O. 12958: N/A 
TAGS: ECON, EPET, PGOV, EINV, ETRD, ZI 
SUBJECT: Fuel Crisis Intensifies 
 
1. (U) Summary: Zimbabwe's fuel supply continues to 
worsen.  Most motorists are grounded, importing their own 
or buying it at exorbitant black market prices.  End 
Summary. 
 
2. (SBU) Even though the GOZ has increased the leaded 
fuel price 6-fold since February, it is still unable to 
pay a diminished subsidy of around 25 percent.  Official 
fuel imports have dwindled to a trickle.  The Caltex 
(ChevronTexaco) rep responsible for Harare told us he has 
been receiving 20-25,000 liters/day, while one of his 20 
stations could easily sell 100,000 liters. Some 
Zimbabweans now leave cars 2 weeks in fuel lines.  At the 
same time, there is a burgeoning black market for fuel, 
with prices presently around US$.85 and occasionally 
reaching US$ 1.40 per liter - 3-to-5 times the official 
price. 
 
3. (SBU) The Caltex rep claimed the GOZ's latest scheme - 
still unannounced - will limit motorists to 30 liters per 
"fill-up."  While this will not add to the country's fuel 
supply, it will spread it more broadly.  It will also 
make it possible for service stations that receive a 
delivery of, say, 5,000 liters to count off the 167 cars 
in line that will get their share, then inform the other 
drivers that they are out-of-luck.  (Many Zimbabweans are 
frustrated spending hours/days in fuel lines only to 
watch the pump run dry just before their turn. 
Occasionally, violence ensues.)  The 30-liter limit will 
also prevent drivers from outfitting cars with ultra- 
expanded tanks.  (The Caltex rep witnessed one small 
truck with a 600-liter tank - quite an engineering feat!) 
 
Comment 
------- 
4. (SBU) Flummoxed Zimbabweans don't seem to have a clue 
why they are paying Z$ 1200-2000 for the same liter that 
cost Z$ 74 as recently as November when Libya was giving 
it away.  Locals who earn Z$150,000 (US$100)/month and 
consider themselves solidly middle-class are just 
beginning to realize they lack the wherewithal to own 
cars, even use public transport in excess.  The speed of 
their downward mobility is dizzying. 
 
Sullivan