Source: ‘Fuel levy hike key for price, supply stability’ – herald
Tapiwanashe Mangwiro
GOVERNMENT has taken proactive measures to guarantee fuel availability and price stability in the event of unforeseen supply disruptions from source markets, amid growing uncertainties caused by ongoing global trade wars after increasing the strategic fuel reserve levy for petrol and diesel.
Through Statutory Instrument 50 of 2025 (SI 50 of 2025), Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube adjusted upwards the fuel strategic levy to be billed per litre acquired by retailers.
“Effective 9 May 2025, the strategic reserve levy . . . shall be calculated at the rate of US$0,2470 per litre of petrol, and at the rate of US$0,1870 per litre of diesel,” the minister announced.
This adjustment represents an increase of 28,34 percent from US$0,177 per litre on the petrol levy and roughly 19,1 percent from US$ 0,157/litre on the diesel levy, both set in 2024.
Strategic Reserve Levy funds are used to build and maintain reserves of fuel to ensure uninterrupted supply in times of disruption, such as geopolitical unrest or supply chain breakdowns.
According to the Treasury, the updated rates align with global benchmarks and reflect Zimbabwe’s commitment to long-term energy resilience.
Economists say the proactive approach to counter the impact of potential supply disruptions in future, in an increasingly uncertain global market, where necessary, even though this at some point result in marginal price increases for consumers.
“We must be realistic, fuel is the lifeblood of any economy. Without a robust strategic reserve, we are at the mercy of international disruptions.”
“Let me be clear, I think this is about protecting farmers, transporters, hospitals, and every business that relies on fuel. They are acting now to avoid chaos tomorrow,” said Dr Prosper Chitambara, an economist.
Zimbabwe is thus building a war chest to guarantee fuel supply and price stability in the country going forward.
However, he noted that this came at a time when the levies and taxes on fuel are already many and high, leaving the country with expensive fuel relative to the region.
“Treasury also needs to look at this and relieve the economy from potential price push-throughs to end consumers,” Dr Chitambara added
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