Source: Govt to cut fuel taxes . . . move tailored to cushion consumers – herald
Mukudzei Chingwere-Senior Reporter
CABINET has approved plans to cut selected, time‑bound fuel taxes to ease inflationary pressures and protect consumers amid fuel supply disruptions linked to the war in the Middle East.
It is also weighing raising ethanol blending in petrol from E5 to E20.
This comes as President Mnangagwa on Monday assured the nation that his administration was implementing measures to shield Zimbabwe from global economic shocks caused by the war in the Middle East, which has disrupted global supply chains.
Addressing a post-Cabinet media briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda said time-bound fuel taxes will be eased.
“Cabinet considered and approved the report on the impact of the Middle East crisis on pricing of basic commodities as presented by the Minister of Industry and Commerce,” said Dr Soda.
“While price hikes have been witnessed in the transport sector, in particular by passenger vehicle operators, Cabinet considered and approved a review of selected and time-bound fuel taxes in order to contain inflationary pressures and safeguard consumer welfare.”
Government, he said, also considered increasing ethanol blending of petrol from the current E5 to E20 level, with a view to reducing the pump price of petrol on the local market.
“Appropriate refinements of the options are underway, and the necessary fuel price adjustments will be communicated in due course,” Dr Soda said.
Local ethanol producers have previously indicated that if the market switched from E5 to E20, motorists would save roughly US18c per litre at the pump — a significant relief.
Dr Soda noted that Cabinet had considered price movements and availability of basic commodities on the domestic market during the period January to March 2026, taking into account the impact of ongoing geopolitical developments in the Middle East.
Despite disruptions in the global oil market and the knock-on effect on international fuel prices, local commodity prices had largely remained stable.
“Most businesses have not increased prices of basic goods such as mealie-meal, laundry soap, cooking oil, sugar, flour, rice, bath soap, washing powder, powdered or fresh milk, eggs, beef, chicken and salt. However, a few bread makers increased prices by an average of 10 percent,” said Dr Soda.
Speaking at the same occasion, the Minister of Industry and Commerce, Mangaliso Ndlovu, said the country has adequate fuel stocks to insulate against supply shocks and maintain price stability.
“We have adequate stocks both inland and in Beira that will see us not experiencing any supply shocks. We have adequate stocks for our industry,” said Minister Ndlovu.
Since the disruptions spawned by the Middle East conflict, Government is working with oil traders in opening up supply routes not affected by the current Middle East conflict.
To enhance supply flexibility, the importation of diesel by road has been approved with immediate effect, in addition to existing pipeline and rail systems.
Authorities have assured the nation that there are enough stocks of petroleum products in the supply chain, with more than three months cover available from Beira and inland storage facilities .
Without Government intervention, diesel would have been priced at US$2,20 per litre instead of the current US$2,05, while petrol would have been higher than the current US$2,17 per litre.
The diesel price has been deliberately set to mitigate the impact on key sectors, including mining, agriculture, haulage services and passenger transport.
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