Harare: Zimbabwe’s cabinet on Tuesday approved a review of selected fuel taxes as authorities move to manage rising fuel costs caused by disruptions in the global oil market linked to the Iran war.
Ministers said the decision comes amid growing pressure on fuel and transport prices, following recent increases that saw petrol rise from $1.52 per litre in February to $2.17, and diesel from $1.56 to $2.05 per litre.
Finance Minister Mthuli Ncube told a post-cabinet media briefing that revising ethanol blending ratios is part of the strategy to lower fuel prices. “We are considering increasing the ethanol blend in petrol from the current E5 to E20 to help reduce pump prices in the local market,” he said. “Refinements are underway, and any necessary fuel price adjustments will be communicated in due course.”
Information Minister Jenfan Muswere added that the cabinet had approved “a review of selected, time-bound fuel taxes to contain inflationary pressures and protect consumer welfare.” Currently, of the $2.17 motorists pay per litre of petrol, about 86 cents go to various government taxes.
While the government maintains that Zimbabwe has roughly three months’ worth of fuel reserves purchased at earlier prices, the Zimbabwe Energy Regulatory Authority (ZERA) sets pump prices based on current import costs to ensure suppliers remain financially viable.
Authorities say most basic commodity prices have remained stable, though pressures are emerging in key sectors. Industry Minister Mangaliso Ndlovu noted, “Most businesses have not raised prices for essential goods such as mealie-meal, laundry soap, cooking oil, sugar, flour, rice, bath soap, washing powder, milk, eggs, beef, chicken, and salt.”
However, the cabinet acknowledged some price increases. “A few bakeries have raised prices by an average of 10 percent,” Ndlovu said, adding that transport sector operators, especially passenger vehicle services, have also implemented price hikes.
