Fuel price increase set to trigger fare increases for travellers

HARARE – Commuters could soon face higher transport fares as escalating conflict in the Middle East drives up global crude oil prices.

The Zimbabwe Energy Regulatory Authority (Zera) announced a sharp increase in fuel prices on Wednesday, with ripple effects expected across public transport, freight and household budgets.

Zera raised the maximum pump price of petrol (Blend E5) to US$1.71 per litre, up from US$1.56, while diesel climbed to US$1.77 per litre from US$1.52.

The increases represent a 9.6 percent rise for petrol and a steep 16.4 percent jump for diesel.

Diesel powers most public transport vehicles, freight trucks, mining equipment and agricultural machinery, making its price especially significant for inflation and commuter fares.

Zera said government intervention prevented even steeper increases.

“Without government cushioning, the actual prices would have been US$1.90 per litre for diesel and US$1.81 per litre for blend,” the regulator said.

To limit the impact, the government reduced the Strategic Reserve Levy to 5.7 cents per litre on diesel from 18.7 cents, and to 13.6 cents on petrol from 24.7 cents. The levy funds Zimbabwe’s strategic fuel reserves, which guard against global supply disruptions.

Acting energy minister Zhemu Soda told the National Assembly on Wednesday that Zimbabwe holds sufficient fuel stocks to meet demand for the next three months, even amid growing concerns over the Middle East conflict. A preparedness report tabled in parliament confirmed reserves remain adequate.

Transport operators warn the diesel hike could force a review of fares, as fuel accounts for a significant share of operating costs, a burden that will ultimately fall on commuters and households.

Because Zimbabwe imports all its fuel, pump prices are largely determined by international oil prices, freight costs and other import-related charges. Economists warn that fuel price increases typically ripple through the broader economy, pushing up the cost of goods and services.