HARARE – Presidential spokesperson George Charamba has confirmed that urgent consultations are underway regarding a potential reduction in fuel taxes, following public outcry over the latest spike in petrol and diesel prices.
The Zimbabwe Energy Regulatory Authority (ZERA) announced the second fuel price increase in weeks, with diesel now costing US$2.05 per litre and petrol rising to US$2.10 per litre. The adjustments have triggered panic buying at service stations across the country and prompted commuter operators to increase fares, placing additional strain on ordinary citizens.
‘A Legitimate And Reasonable Request’
In an interview with ZIFM Stereo News, Charamba acknowledged the public’s concerns and confirmed that their representations have been escalated to the appropriate authorities.
“We have had a review of fuel prices, and this is the second in a row. These increases arise from a disturbed situation in the Persian Gulf and Middle East regions of the world,” Charamba said.
He outlined the structural vulnerabilities that expose Zimbabwe to global oil price shocks.
“Naturally, that disturbed environment is translated into higher fuel costs for countries like Zimbabwe, which are, one, landlocked; two, non-oil producing; and three, non-crude-oil refining. It places us in a very vulnerable position where we are susceptible to price turbulence.”
Following engagements with members of the public, Charamba said a specific request was put to government.
“But after lots of explanations and engagement, the plea from the citizenry was, would the government consider reducing the taxes that are fuel-related. They are substantial and, if reduced, could transfer some degree of ease to the citizenry. That is a legitimate and reasonable request, particularly against the background of the turbulence we are witnessing,” he stated.
Charamba confirmed that the matter is receiving attention at the highest levels of government.
“I have escalated that request to the higher authorities, and as I speak to you just now, consultations are underway.”
Fiscal Implications Under Review
Charamba cautioned that any decision to reduce taxes must be weighed against potential consequences for government revenue and service delivery.
“As we cut back on taxes, revenue to government shrinks and our capacity to deliver basic services can be curtailed,” he said.
Fuel taxes currently constitute approximately 40 percent of the pump price. These levies include a fixed US$0.30 Excise Duty per litre, a Strategic Reserve Levy, a Carbon Tax, a Debt Redemption Levy and administrative fees payable to ZERA.
The ripple effects of the price increases are already evident across the economy. Commuter omnibus operators have adjusted fares upward, adding to the cost-of-living pressures faced by households. Members of the public continue to appeal for government intervention to mitigate the impact.
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