Zimbabwe Considers Fuel Tax Cuts Amid Soaring Petrol And Diesel Prices
Zimbabwe is set to increase ethanol blending and cut fuel taxes after President Emmerson Mnangagwa established a high-level committee to address rising fuel prices, as authorities scramble to ease pressure on consumers and businesses.
The move follows sharp increases in fuel costs, with petrol now at US$2.17 per litre (approximately R40.15) and diesel at US$2.05 per litre (approximately R37.93), triggering widespread concern across the country.
Government officials say urgent interventions are being crafted, with tax reviews and increased ethanol blending among the key measures under consideration.
Govt Moves After Public Outcry
Authorities acted swiftly after concerns over fuel price hikes were raised.
Speaking on X on 21 March 2026, Presidential Communications official George Charamba explained how the matter reached the highest office.
“Following our engagement here, your request to Government in respect of fuel price pressures were duly communicated to the President, Dr ED Mnangagwa.”
He added:
“He wasted no time and directed Finance Minister Mthuli Ncube to look into the matter expeditiously for some relief.”
A high-level inter-ministerial committee, led by Chief Secretary Dr Martin Rushwaya, was then established on 20 March 2026 to urgently review the situation.
Officials have since been holding meetings to finalise a package to stabilise fuel prices.
Taxes And Global Pressures Under Scrutiny
Finance Minister Professor Mthuli Ncube acknowledged that global developments have played a role, but said the Government is actively exploring relief measures.
“We continue to look at other ways to ameliorate and try to cap the increase in prices,” he said.
“I can assure the nation that we are doing all we can to manage the situation.”
Zimbabwe imports all its fuel, making it vulnerable to international price shocks. Recent disruptions linked to tensions in the Middle East have pushed global oil prices higher.
However, taxes and levies remain a significant component of local fuel prices. Diesel currently carries about US$0.42 per litre (approximately R7.77) in taxes, while petrol carries about US$0.85 per litre (approximately R15.73).
Authorities are now considering reviewing these charges to cushion consumers.
Professor Ncube noted:
“If we had allowed the full global impact to come through, diesel would be selling for around US$2.20, but we managed to cap it at US$2.05.”
Ethanol Blending And Long-Term Plans
The government is also pushing to increase ethanol blending from E5 to E20, a move expected to reduce reliance on imported fuel.
Vice President Constantino Chiwenga recently emphasised the importance of local production during a visit to Green Fuel in Chisumbanje.
“With a storage capacity of 40 million litres and the increased production they have achieved, they can now ameliorate the petrol supply shocks we are beginning to experience.”
Green Fuel says motorists could save about US$0.18 per litre (approximately R3.33) under E20 blending.
General Manager Conrad Rautenbach said:
“If there was E20 now instead of E5, there would be a saving of roughly US$0.18 per litre at the pump.”
The company is targeting production of 120 million litres of ethanol in 2026 to support the transition.
In the longer term, the government is also exploring electric vehicles and alternative energy sources to reduce dependence on imported fuel.
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The post Zimbabwe To Cut Fuel Taxes And Increase Ethanol Blending As Mnangagwa Orders Urgent Action On Rising Prices appeared first on iHarare News.
