Government urges LP gas operators to reduce prices

The Ministry of Finance, Economic Development, and Investment Promotion has reiterated its call for Liquefied Petroleum Gas (LPG) operators to lower prices following the removal of Value Added Tax (VAT) on LPG gas, effective January 1, 2025.

The VAT removal, brought to life under Statutory Instrument 195 of 2024, was aimed at reducing the cost of LPG gas to citizens who rely on it as a source of energy.

However, the government has raised concerns that some LPG suppliers have not adjusted their prices accordingly, effectively withholding the relief meant for consumers.

In response to this, the Zimbabwe Energy Regulatory Authority (ZERA) issued a directive on January 7, 2025, outlining the maximum LPG prices that operators should charge.

Despite this, some suppliers have not complied with the government’s directive.

Minister of Finance, Professor Mthuli Ncube, has now urged LPG operators to pass on the VAT reduction to consumers to ensure that citizens benefit from lower energy costs.

He emphasized that adherence to this measure aligns with the government’s broader efforts to stabilize the economy and support affordability for households.

The government remains committed to monitoring price adjustments and ensuring that consumers receive the intended financial relief from this tax policy change.

State media