Mthuli Ncube Explains Why Zimbabwe’s Fuel Prices Remain High
Finance Minister Mthuli Ncube has explained the factors keeping Zimbabwe’s fuel prices high, pointing to structural costs, taxes and procurement inefficiencies.
Also Read: Zimbabwe Fuel Prices Are Actually Second Highest: Mthuli Ncube Insists
Landlocked Position Adds Pressure
Speaking at a business forum in Bulawayo, Minister Ncube said Zimbabwe’s geographical position plays a major role in determining pump prices.
Without direct access to the sea, fuel must be imported through neighbouring countries such as Mozambique and South Africa before being transported inland, pushing up costs.
Taxes and Procurement Driving Prices
According to The Herald, Minister Ncube explained that fuel pricing is also influenced by taxes and levies, which make up a significant portion of the final price. He noted that Government has, at times, intervened by adjusting these charges to ease pressure on consumers.
However, he singled out procurement as the biggest concern, revealing that Zimbabwe is paying considerably more for fuel at source compared to other countries.
This price gap, he said, remains even before taxes are applied, highlighting inefficiencies that need to be addressed.
ZiG Gains Momentum in Fuel Market
Turning to the domestic currency, Ncube said the Zimbabwe Gold (ZiG) is increasingly being used for fuel purchases.
He described this as a sign of growing confidence and stability in the local currency system.
Measures to Manage Global Shocks
The Minister said global developments, particularly tensions in the Middle East, continue to affect fuel and related costs through multiple channels.
In response, Government has introduced measures such as maintaining fuel reserves and increasing ethanol blending levels in petrol from 5 percent to 20 percent — a move that has already reduced prices.
He also encouraged efforts to extend blending to diesel.
Focus on Long-Term Solutions
While acknowledging that fuel taxes are an important revenue stream, Ncube said Government remains committed to using them flexibly to cushion citizens from price shocks.
He added that improving procurement systems, alongside ongoing blending initiatives, will be key to stabilising fuel prices going forward.
The post Why Zimbabwe’s Fuel Prices Remain High: Minister Mthuli Ncube Explains appeared first on iHarare News.
