Mthuli Ncube Removes All Diesel Taxes As Fuel Prices Rise To US$2.23 And US$2.11

Mthuli Ncube Says He Has Removed All Taxes On Diesel As Fuel Prices Go Up Again

Zimbabwe’s Finance Minister Mthuli Ncube says the government has removed all taxes on diesel after fuel prices increased again, with diesel now pegged at US$2.11 (approximately R39.11) per litre and petrol rising to US$2.23 (approximately R41.35) per litre effective 2 April 2026, according to the Zimbabwe Energy Regulatory Authority (ZERA).

The move, announced on 2 April 2026, comes as authorities attempt to cushion businesses and consumers from rising global oil prices linked to geopolitical tensions in the Middle East.

According to the Ministry of Finance press statement issued on 2 April 2026, the government said it had taken what it described as decisive action to soften the impact of rising fuel costs.

“Government has resolved to remove all taxes levied on diesel, with effect from 3 April 2026.”

The Ministry explained that the decision followed concerns about rising international fuel prices and their impact on Zimbabwe’s economy.

“This intervention comes in the context of escalating geopolitical tensions in the Middle East, which have significantly disrupted global oil markets, resulting in sharp increases in international fuel prices.”

Authorities said the developments were already affecting Zimbabwe’s fuel import costs and could push up prices of goods and services.

“These developments have a direct bearing on Zimbabwe’s fuel import costs, with potential knock-on effects on production, transportation, and the general price level.”

Taxes Removed To Cushion Businesses

The government confirmed that four major taxes on diesel had been suspended with effect from 3 April 2026. These include:

Excise Duty
ZINARA Road Levy
Carbon Tax
Strategic Reserve Levy

Officials said the suspended taxes amount to US$0.54 (approximately R10.01) per litre.

“These taxes collectively amount to USD 0.54 per litre, representing a significant proportion of the retail price of diesel.”

Authorities added that without intervention, diesel could have risen to US$2.65 (approximately R49.15) per litre.

Meanwhile, the government clarified that petrol taxes remain unchanged.

“However, taxes and levies on petrol remain unchanged at current levels.”

Fuel Prices Rise Despite Intervention

According to ZERA, the new fuel prices effective 2 April 2026 are:

Diesel: US$2.11 (approximately R39.11) per litre
Petrol Blend (E5): US$2.23 (approximately R41.35) per litre

ZERA indicated that rising global oil prices were behind the adjustments.

“Since the last price review, FOB price for diesel has gone up by 33.16%, and for petrol by 5.96%.”

Authorities also reassured the public about fuel availability.

“Government notifies stakeholders that there are enough stocks of petroleum products in the supply chain… with more than three months’ supply cover.”

The government also confirmed new supply measures to stabilise availability.

“Government has, with immediate effect, approved the importation of diesel by road, in addition to pipeline and rail.”

Officials said Petrotrade and the National Oil Infrastructure Company (NOIC) will assist in distributing fuel, particularly to remote areas.

Regional Pressure Builds

The developments come after several neighbouring countries introduced tax relief measures in recent days.

On 31 March 2026, Zambia temporarily removed certain fuel taxes after prices rose to US$1.42 (approximately R26.35) for petrol and US$1.56 (approximately R28.95) for diesel.

Namibia also reduced fuel levies by 50% starting 1 April 2026, while South Africa introduced temporary relief measures on 31 March 2026 to cushion motorists.

Zimbabwe’s intervention now follows similar moves across the region as governments respond to rising global oil prices.

The government said it will continue monitoring global developments.