KEY POINTS
- Zimbabwe increased diesel and petrol prices minutes after announcing suspension of diesel taxes meant to lower pump costs.
- Diesel rose to $2.11/litre and petrol to $2.23/litre, with higher prices expected outside major cities.
- Authorities blamed global supply disruptions and said diesel prices remain subsidised despite the increase.
Motorists in Zimbabwe were left frustrated after authorities announced a fuel price increase just minutes after the government promised relief by suspending taxes on diesel.
The sudden reversal sparked criticism and confusion, as expectations of lower pump prices quickly turned into higher costs.
The Zimbabwe Energy Regulatory Authority (ZERA) announced that diesel prices would rise to $2.11 per litre from $2.05, while petrol increased to $2.23 from $2.17 per litre. Fuel stations located outside major cities such as Harare and Mutare are expected to charge up to $0.10 more per litre after factoring in transportation costs.
The announcement came shortly after Finance Minister Mthuli Ncube posted on social media that the government had suspended all taxes on diesel, amounting to about $0.56 per litre. The move was presented as part of measures to cushion citizens and industries from rising global fuel prices.
Ncube said the government had paused the collection of excise duty, the ZINARA road levy, carbon tax and the strategic reserve levy on diesel. He noted that diesel plays a critical role in agriculture, mining, manufacturing and logistics, which justified the targeted intervention. Taxes on petrol, which total about $0.86 per litre, were left unchanged.
However, less than ten minutes after the minister’s announcement, ZERA released new fuel prices showing increases for both diesel and petrol. The regulator explained that the government was already keeping diesel prices below market levels.
According to ZERA, diesel would have cost as much as $2.65 per litre without government intervention. The authority argued that the revised prices still reflected some level of cushioning despite global market pressures.
Fuel prices in Zimbabwe have been rising since disruptions linked to the Iran conflict affected global oil supply chains. Iran has restricted movement through the Strait of Hormuz, a key maritime route connecting the Persian Gulf to global markets, creating supply concerns and pushing prices higher worldwide.
Before the escalation in tensions on February 28, fuel in Zimbabwe sold for about $1.56 per litre for petrol and $1.52 for diesel. The recent adjustments mark a significant increase compared to those earlier levels.
