Massive Increase In Taxes To Blame As Petrol Hits US$2.17, Government Now Takes 86 Cents Per Litre

Petrol Taxes Jump 64% As Price Hits US$2.17 In Zimbabwe

Zimbabwean motorists are reeling after petrol surged to an eye-watering US$2.17 per litre, with official data showing that a sharp increase in taxes is driving the spike. The latest figures reveal that petrol taxes jumped from US$0.5209 to US$0.857 in just two weeks — a steep increase of over 64%.

Diesel has also risen to US$2.05, but its tax component declined slightly, placing the spotlight firmly on petrol.

The figures are drawn from the latest Fuel Price Build Up dated 18 March 2026, released by the Zimbabwe Energy Regulatory Authority (ZERA).

Petrol Taxes Surge By Over 64%

The ZERA build-up shows that taxes and levies now dominate petrol pricing.

Out of the US$2.17 pump price, about US$0.857 is in taxes. This represents nearly 40% of the total cost.

Just two weeks earlier, taxes stood at US$0.5209 per litre.

That means the tax component alone increased by US$0.3361 — a jump of approximately 64.5%.

ZERA’s pricing model shows how these components feed into the final price:

“Pump prices are determined by international product prices, taxes and levies, and distribution margins.”

The data indicates that the actual fuel cost for petrol is around US$1.18, placing taxes close to the cost of the fuel itself.

Prices Jump Sharply In March

The increase comes within a short space of time.

Petrol has moved from US$1.71 in early March to US$2.17 by 18 March 2026, a rise of US$0.46.

Diesel increased more modestly, from US$1.77 to US$2.05.

ZERA attributes part of the increase to global market movements, reflected in rising Free On Board (FOB) prices during the same period.

“FOB prices have increased in line with global trends, impacting the overall cost structure.”

However, the scale of the petrol price jump closely mirrors the surge in taxes recorded in the same build-up.

Diesel Cushioned As Petrol Overtakes

ZERA data shows a contrasting trend between the two fuels.

While petrol taxes surged by more than 64%, diesel taxes actually declined slightly from US$0.442 to US$0.422.

This has shifted the pricing balance.

Earlier in March, petrol was cheaper than diesel. By 18 March 2026, petrol had become more expensive.

The breakdown suggests that diesel prices remain largely influenced by international market costs, while petrol prices are increasingly shaped by domestic tax changes.