The Cabinet has approved plans to reduce selected fuel taxes. These measures aim to ease inflation and protect consumers.
Rising fuel costs link to supply disruptions from the Middle East conflict. Therefore, authorities want to stabilise prices and limit further increases.
Officials announced the decision during a post-Cabinet briefing in Harare. They also confirmed more measures are under consideration.
Cabinet Considers Ethanol Blending Increase
Minister Zhemu Soda addressed the media after the Cabinet meeting.
“Cabinet considered and approved the report on the impact of the Middle East crisis on pricing of basic commodities as presented by the Minister of Industry and Commerce.
“While price hikes have been witnessed in the transport sector, in particular by passenger vehicle operators, Cabinet considered and approved a review of selected and time-bound fuel taxes in order to contain inflationary pressures and safeguard consumer welfare.”
Meanwhile, the government is considering increasing ethanol blending from E5 to E20. This move aims to reduce fuel prices at the pump.
Soda said authorities are still refining these options. He added that officials will announce final fuel adjustments soon.
Local ethanol producers support the plan to raise blending levels. They estimate savings of about 18 cents per litre for motorists.
Motorists Raise Concerns Over Ethanol Fuel
However, many motorists oppose higher ethanol blends. They argue it causes engine knocking and damages components.
Ethanol can wear down rubber seals and fuel lines over time. Additionally, it has lower energy density than standard petrol.
As a result, drivers must refuel more often to travel the same distance. Unlike other countries, Zimbabwe offers only blended fuel options. There is no choice between pure petrol and ethanol blends.
Consequently, many motorists feel forced to use unsuitable fuel. Drivers also question the pricing of blended fuel.
They argue it should cost less than petrol in neighbouring countries.
Will the Plan Deliver Real Relief?
The plan could offer short-term relief if fuel taxes drop quickly. Lower taxes may reduce pump prices and ease transport costs. However, the benefits depend on how much prices actually fall.
Increasing ethanol blending may also lower costs for consumers. Yet, concerns about engine performance could limit public support. If motorists resist the change, the policy may face challenges.
Additionally, savings from ethanol may not offset reduced fuel efficiency. Drivers might spend more overall due to frequent refuelling.
Furthermore, global oil prices remain unpredictable and could rise again. This risk may weaken the impact of tax cuts and blending policies.
Therefore, the plan may help in the short term. However, long-term success will depend on balancing cost, quality, and consumer trust.
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