Zimbabwean authorities have stepped in to clarify growing public concern over high fuel prices, explaining that while petrol and diesel remain costly, the country is not the most expensive in the region.
Speaking at the Connect Africa Symposium in Bulawayo, Finance Minister Mthuli Ncube said Zimbabwe ranks among the higher-priced markets but still falls behind Malawi, which currently has the highest fuel costs.
Zimbabwe fuel prices not the most expensive
According to Government, Zimbabwe’s fuel prices are broadly comparable to countries like Kenya when measured against similar economic conditions.
This challenges the perception that Zimbabwe stands alone as the region’s most expensive fuel market.
Landlocked geography drives fuel costs
One of the biggest contributors to high fuel prices is Zimbabwe’s location.
As a landlocked country, Zimbabwe depends on fuel imports that arrive through ports in Mozambique or South Africa before being transported inland.
This extra leg of the journey, whether by pipeline or road, adds significant logistical costs, which ultimately push up the price paid at the pump.
Taxes and levies add pressure
Government-imposed taxes and levies also play a major role. Currently, these charges amount to around 54 US cents per litre for diesel.
While authorities have occasionally reduced or waived some of these taxes to ease pressure on consumers, they remain a key component of the final price.
At the same time, officials argue that fuel taxes are a necessary source of national revenue, meaning they cannot be removed entirely without affecting public finances.
“That’s why when we remove the taxes, you find that our price was still higher than others. So our procurement process should be improved,” Prof Ncube said.
Procurement inefficiencies raise fuel prices further
Beyond transport and taxes, Zimbabwe faces a more complex challenge: the cost of acquiring fuel itself.
Authorities revealed that the country pays between 30 and 40 US cents more per litre at the point of entry compared to regional peers.
This means that even before taxes are added, Zimbabwe’s base fuel cost is already higher.
Government has acknowledged weaknesses in the procurement system and says improving efficiency in this area could significantly lower prices.
Currency stability and fuel payments
Government has also pointed to growing confidence in the Zimbabwe Gold (ZiG) currency, noting increased use of the local unit for fuel purchases.
Officials see this as a sign of improving stability, which could help streamline pricing over time.
Measures to contain fuel costs
In response to both regional and global pressures, authorities have introduced several measures aimed at stabilising prices.
These include maintaining strategic fuel reserves, adjusting taxes when necessary, and increasing the petrol blending ratio from 5% to 20%.
The blending initiative, mixing fuel with ethanol, has already reduced petrol prices by about 15 US cents per litre.
Government is now pushing to introduce similar blending for diesel.
