Zim Govt Increases Fuel Reserve Levy: Petrol Up 28%, Diesel Up 19%
The Government of Zimbabwe has increased the Strategic Fuel Reserve Levy on both petrol and diesel, as announced through Statutory Instrument 50 of 2025.
Finance Minister Professor Mthuli Ncube gazetted the changes, which became effective on 9 May 2025, pushing the levy on petrol up from US$0.1770 to US$0.2470 per litre — a 28.34% increase.
For diesel, the levy has been raised from US$0.1570 to US$0.1870 per litre, reflecting an approximate 19.1% hike.
Also Read: Diesel UP, Petrol UP: ZERA Announces New Fuel Prices in Zimbabwe Effective 5 February 2025
Government Justifies Strategic Fuel Reserve Levy Hike as Strategic Planning
According to The Chronicle, the Strategic Fuel Reserve Levy is intended to fund the country’s emergency fuel stockpiles, ensuring availability during global crises or supply chain disruptions.
Economist Prosper Chitambara welcomed the policy shift as forward-thinking.
“Fuel is the lifeblood of the economy. Without a robust strategic reserve, we are at the mercy of international disruptions.”
He added that protecting vital sectors such as agriculture, transport, and healthcare requires guaranteed access to fuel.
Public Concerns Over High Fuel Prices Remain
Despite supporting the rationale, Chitambara also cautioned that the move comes at a sensitive time.
“Zimbabwe already has some of the highest fuel prices in the region, largely due to multiple taxes and levies,” he noted.
He urged the government to explore ways to cushion consumers from the broader economic impact, particularly inflationary pressures.
ZERA Maintains May Fuel Prices Despite Levy Hike
In a move that may ease immediate concerns, the Zimbabwe Energy Regulatory Authority (ZERA) has kept fuel prices unchanged for May 2025.
According to ZERA’s monthly pricing update, the freeze is in line with regulations that benchmark local prices against the global average of the preceding month.
As such, diesel remains at US$1.52 per litre, while petrol stays at US$1.61 per litre.
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