Zimbabwe’s Petrol Now Highest In Region And It’s Not Because Of Iran But Massive 86 Cent Tax

Zimbabwe’s Petrol Now Highest In Region And It’s Not Because Of Iran But Taxes

Zimbabwean motorists are now paying the highest fuel prices in the entire Southern African region, with a litre of petrol hitting a staggering US$2.17 (approx R40.15). An in-depth analysis of the pricing structure reveals the culprit is not global conflict but a massive increase in domestic taxes.

While the world watches events in the Gulf, data from the Zimbabwe Energy Regulatory Authority (ZERA) shows that a whopping 85.7 cents of every litre of petrol goes straight to the government in taxes and levies. This stands in stark contrast to regional neighbours, who have seen only modest increases. According to figures shared by ZimLive, Zimbabwe’s fuel price has skyrocketed by 39.1% since January, while Botswana recorded a 0% increase and South Africa saw a mere 2% hike over the same period.

The Regional Shock

The comparison with neighbouring states paints a bleak picture for Zimbabwean consumers. As of March 2026, the data shows Zimbabwe far outpacing the rest of the Southern African Development Community (SADC) in fuel costs.

Country	Jan–Feb 2026 Price (USD/L)	March 2026 Price (USD/L)	Change (%)	Approx Rand Equivalent (March)
Zimbabwe	US$1.56	US$2.17	+39.1%	R40.15
Zambia	US$1.51	~US$1.60	~+6%	R29.60
Tanzania	~US$1.30	~US$1.35	~+4%	R24.98
Mozambique	~US$1.20	~US$1.25	~+4%	R23.13
South Africa	~US$1.04	~US$1.06	~+2%	R19.61
Botswana	~US$1.10	~US$1.10	0%	R20.35
Namibia	~US$1.12	~US$1.15	~+3%	R21.28

“Zimbabwe recorded the highest fuel price increase in the region,” noted a detailed analysis posted by ZimLive on March 18. “A +39.1% jump — far above Zambia (~6%), Tanzania & Mozambique (~4%), South Africa (~2%), and Botswana (0%).”

This makes Zimbabwe a stark outlier. Zambia, which sources much of its fuel through Zimbabwean supply routes, has kept its price at around US$1.60 (approx R29.60). Botswana’s fuel price has remained unchanged at US$1.10 (approx. R20.35) per litre. South African motorists are paying approximately US$1.06 (R19.61), less than half of what their Zimbabwean counterparts are paying.

The Tax Trap at Home

So why the massive discrepancy? The breakdown of the ZERA pricing model for the Blend E5 petrol, effective from March 18, 2026, tells the story. While the global Free on Board (FOB) price for petrol increased by 14.71 cents, this accounts for only a fraction of the 46-cent jump from the US$1.71 price just two weeks prior.

“Out of the US$2.17 you pay for a litre of petrol, nearly 86 cents goes to various government taxes,” newZWire reported on X, highlighting the staggering burden.

This tax component has ballooned by over 33 cents since the beginning of March. On the March 5 price build-up, taxes on a litre of Blend E5 stood at 52.09 cents. By March 18, that figure had exploded to 85.70 cents. This means that for every litre of petrol purchased, nearly 40% of the cost is now made up of government levies.

“On petrol, the government takes nearly as much as the fuel itself costs,” states a newZWire analysis of the ZERA data.

An Unexplained Anomaly

The situation is even more puzzling because diesel taxes actually fell slightly over the same period, by 2 cents. This has led to a bizarre price inversion where petrol, traditionally cheaper than diesel due to its ethanol blend, is now 12 cents more expensive.

“This tax increase alone added roughly 33 cents to the price of Blend E5,” the analysis explains. “Without this tax hike, Blend E5 would have cost roughly US$1.84, making it significantly cheaper than Diesel 50 (US$2.05). Instead, it became more expensive.”

The massive and disproportionate jump in the petrol tax line item from 52.09 cents to 85.70 cents has raised eyebrows. Some analysts suggest it could indicate a significant policy shift, while others have not ruled out a data anomaly in the official ZERA document.

Global Crisis, Local Choices

While the government has previously stated that Zimbabwe holds enough fuel reserves to last three months, purchased at older, lower prices, ZERA is mandated to set new prices based on current replacement costs. This ensures importers do not make a loss.

However, critics point out that while global events provide the backdrop, it is the local tax regime that has pushed Zimbabwean motorists to the brink. One user on X observed,

“Global problems are quickly localised. But global advantages never arrive.”

Another noted that the country’s ethanol-blended petrol is now the most expensive in the region, a status that has little to do with crude oil prices and everything to do with the tax burdens imposed on it domestically.