Categories: Zim Latest

Fuel levy up 28% to shield Zim from global shocks

Under Statutory Instrument 50 of 2025, the government has raised the fuel strategic reserve levy by 28.34% for petrol (US$0.2470/litre) &19.1% for diesel (US$0.1870/litre), effective May 9.

The move aims to build reserves to protect the country against global supply disruptions.

However, despite the hike, fuel prices remain unchanged for May petrol at US$1.61/litre and diesel at US$1.52/litre, offering temporary relief amid global market volatility.

Zimbabwe’s fuel prices are considered some of the most expensive compared to other countries in the Southern African Development Community bloc.

Zimbabwe’s fuel cost build-up comprises several components that determine the final pump price.

These include the international raw fuel cost (FOB), transportation costs, exchange rate between the US dollar and local currency, taxes and levies, blending costs and distributor margins.

Some time in 2024, social justice watchdog, the Zimbabwe Coalition on Debt and Development, attributed this phenomenon to a market monopoly by the government.

Zwnews

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