Zambia Slashes Fuel Taxes As Prices Hit US$1.42 & US$1.56, Joins Namibia And SA As Zimbabwe Stands Still

Zambia Slashes Fuel Taxes To Protect Consumers After Prices Reach US$1.42 & US$1.56, Joins Namibia And SA As Zimbabwe Stands Still

Zambia has cut fuel taxes for three months after petrol and diesel prices rose to about US$1.42 (approximately R26.35) and US$1.56 (approximately R28.95) per litre, joining Namibia and South Africa, which have also introduced temporary relief measures to cushion motorists from rising global oil prices.

The move comes as Zimbabwean motorists continue paying some of the highest fuel prices in the region, with petrol currently averaging US$2.17 per litre (approximately R40.15) and diesel at around US$2.05 per litre (approximately R37.93), significantly higher than neighbouring countries that have moved to reduce duties and taxes to shield consumers.

Zambia’s Energy Regulation Board (ERB) announced the decision in a press statement issued on Tuesday, 31 March 2026, confirming that Zambia will temporarily remove certain fuel taxes to cushion consumers from rising global oil costs.

Zambia Suspends Fuel Taxes For Three Months

The Energy Regulation Board (ERB) said the government intervened after international oil prices surged due to geopolitical tensions in the Middle East, which pushed up domestic fuel costs.

Introducing the measures, the regulator explained that authorities had taken steps to soften the impact on consumers.

“In order to cushion consumers from the adverse impact of sharp increase in international oil prices while ensuring continued security of fuel supply in the market, Government has resolved to intervene by temporarily suspending Excise Duty and Zero Rating of Value Added Tax (VAT) on petrol and diesel for a period of three (3) months, from April to June 2026,” the ERB said in a statement issued on 31 March 2026.

Despite the tax relief, Zambia still recorded price increases, although authorities indicated the intervention helped moderate the rise.

The regulator confirmed the new pump prices:

“The pump price of petrol has been adjusted from K26.61/litre to K27.15/litre, diesel from K23.25/litre to K29.78/litre, Kerosene from K21.06/litre to K32.26/litre and Jet A-1 from K22.39/litre to K34.74/litre.”

The revised prices took effect at midnight on 31 March 2026 and will remain in place until the next review.

The ERB also attributed the increases to global developments.

“During the review period, international oil prices recorded significant increases largely driven by heightened geopolitical crisis in the Middle East.”

The regulator added that currency movements also contributed to the pressure.

“The Zambian Kwacha depreciated against the United States Dollar… This movement in the exchange rate further exerted an upward pressure on domestic fuel prices.”

Namibia And South Africa Also Cut Fuel Taxes

Zambia’s move comes after Namibia announced a 50 percent reduction in fuel levies for three months beginning 1 April 2026.

Namibian Minister of Industries, Mines and Energy Modestus Amutse explained the government’s decision.

“This measure is necessitated due to the high price volatility of petroleum products, which resulted from the ongoing geopolitical tensions in the Middle East.”

“Cabinet has resolved to reduce fuel levies by 50% for three months to mitigate the impact on consumers.”

Following the intervention, Namibia confirmed petrol prices of approximately US$1.20 (about R22.89) per litre.

Meanwhile, South Africa also introduced temporary relief measures on 31 March 2026, reducing the general fuel levy for one month.

Finance Minister Enoch Godongwana and Mineral and Petroleum Resources Minister Gwede Mantashe explained the decision in a joint statement.

“The escalation of conflict in the Middle East has materially increased risks to global energy markets, placing significant upward pressure on domestic fuel prices.”

The South African government said the intervention would cost about R6 billion (approximately US$324 million).

Authorities indicated the measure would help ease pressure on transport and food costs.

Zimbabwe Fuel Prices Remain Higher

The regional interventions have placed Zimbabwe’s fuel pricing into sharp contrast with neighbouring countries.

Zimbabwe petrol prices are currently around US$2.17 (approximately R40.15) per litre, while diesel is about US$2.05 (approximately R37.93) per litre, according to recent pricing data.

By comparison:

Zambia Petrol: US$1.42 (approximately R26.35)
Zambia Diesel: US$1.56 (approximately R28.95)
Namibia Petrol: US$1.20 (approximately R22.89)
Zimbabwe Petrol: US$2.17 (approximately R40.15)
Zimbabwe Diesel: US$2.05 (approximately R37.93)

This means Zimbabwean motorists are paying more than US$0.60 per litre higher than Zambia and nearly double Namibia’s petrol price.

The ERB emphasised that global market developments were the main drivers behind rising prices.

“During the review period, international oil prices recorded significant increases largely driven by heightened geopolitical crisis in the Middle East.”

Authorities across the region continue to monitor developments, with Zambia’s tax relief expected to run from April to June 2026, while South Africa and Namibia are also reviewing their interventions periodically.