HARARE – The Zimbabwe Energy Regulatory Authority (ZERA) on Thursday announced a shock fuel price increase just when motorists had been promised relief at the pumps.
Diesel goes up to $2.11 from $2.05 per litre while the new petrol price was set at $2.23 from $2.17. Fuel stations outside Harare and Mutare can expect to pay up to $0.10 more after factoring in transport costs.
The government sharply raised fuel prices last month after the Iran war interrupted global supply, but with other countries in the region removing government taxes to keep fuel prices in check, officials had undertaken to carry out a similar review.
Iran has restricted the movement of oil shipments through the Strait of Hormuz, a narrow waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, serving as a critical choke point for global oil and gas shipments.
Finance Minister Mthuli Ncube raised hopes when he posted a statement on his X account at 9.14PM on Thursday announcing the suspension of all government taxes on diesel — amounting to $0.56 per litre.
“The government of Zimbabwe under the visionary leadership and guidance of His Excellency, the President, Cde Dr E.D. Mnangagwa, has taken decisive and unprecedented action to cushion citizens and industry from the adverse effects of rising global fuel prices,” Ncube effused.
He said the government had taken note of “long standing public concerns regarding the contribution of domestic fuel taxes to pump prices” as he announced a pause on the collection of excise duty, ZINARA road levy, carbon tax and strategic reserve levy.
Taxes on petrol, adding up to $0.86, would remain unchanged, he said, as his focus was on diesel — a “critical input in agriculture, mining, manufacturing and logistics.”
Ten minutes later, ZERA announced that fuel prices were going up — including diesel.
ZERA said the government was keeping the price of diesel “lower than it ought to be.”
“Without government intervention, the price of diesel would have been $2.65 per litre,” ZERA said.
Ncube’s promise of “making deliberate and significant fiscal sacrifice in the national interest, prioritising… the welfare of citizens over short term revenue considerations” had, within minutes, turned into a cruel trick on motorists.
Fuel was selling for $1.56 per litre of petrol and $1.52 per litre of diesel before the United States and Israel began their bombardment of Iran on February 28.
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