Why Zimbabwe’s fuel is the most expensive in Southern Africa

Tendai Ruben Mbofana

​The latest surge in pump prices, which took effect on March 4, 2026, has once again plunged the Zimbabwean consumer into a state of familiar despair.

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Following the Zimbabwe Energy Regulatory Authority’s announcement, petrol has climbed to $1.71 per litre from $1.56 (a 9.6% increase), while diesel has jumped to a staggering $1.77 per litre from $1.52—a massive 16.4% surge in a single month.

The official narrative from the authorities points toward the volatile geopolitical climate in the Middle East—specifically the intensifying conflict between the United States and Iran—as the primary culprit for this spike.

While it is true that global oil benchmarks have reacted sharply to these tensions, there is a far more uncomfortable truth that the government continues to sidestep.

Zimbabwe’s fuel prices were the highest in the Southern African Development Community long before the first drone was launched in the current Middle East crisis, and they remain disproportionately high today because of deliberate domestic policy choices.

To understand the magnitude of this disparity, one only needs to look across the border.

As of March 2026, motorists in South Africa are paying approximately $1.27 per litre for petrol, while our neighbors in Zambia—who are just as landlocked as we are—enjoy prices of around $1.40 for petrol and a remarkably low $1.22 for diesel.

Even Botswana, which shares our logistical challenges, maintains prices significantly lower than our own, with petrol retailing at approximately $1.15 per litre and diesel at $1.21 per litre—a stark difference of over 55 cents compared to Zimbabwe’s current rates.

This creates a haunting question for every Zimbabwean struggling to put food on the table.

Why must a citizen in Harare pay nearly 50 cents more per litre than someone in Lusaka or Gaborone?

The answer lies not in the boardrooms of OPEC, but in a predatory taxation system and an opaque procurement model that treats fuel as a convenient cash cow for a revenue-starved state.

A critical analysis of our pricing structure reveals a labyrinth of levies and taxes that account for nearly a third of the total cost at the pump.

In Zimbabwe, total taxes and levies amount to approximately $0.6320 per litre for petrol and $0.5720 for diesel.

This is a staggering burden when compared to regional peers like Botswana, where taxes make up less than 20% of the final price.

The primary driver is the Excise Duty, which is fixed at $0.30 per litre for both fuel types.

On top of this, the Strategic Reserve Levy, which was recently adjusted to $0.127 per litre before the government offered a temporary “cushioning” reduction, remains a heavy weight.

Consumers are also forced to pay a Carbon Tax of $0.03 per litre and a Debt Redemption Levy—originally intended to clear decades-old energy sector debts—that siphons another $0.057 per litre from petrol and $0.013 from diesel.

When you add the ZERA administrative fee of $0.021 and various port handling charges, the state is essentially taking a massive “cut” before a single drop of fuel reaches a vehicle’s tank.

Beyond the tax regime, the elephant in the room remains the mandatory ethanol blending policy.

Originally introduced as a strategic measure to save foreign currency, the blending mandate has instead become a heavy anchor around the neck of the economy.

The domestic cost of ethanol, largely controlled by protected private interests, is currently priced at roughly $1.10 per litre.

This is nearly double the global market average of $0.60 to $0.70 per litre.

Because the government mandates that all petrol sold in Zimbabwe must be blended at E20 or E5 ratios, consumers are effectively forced to subsidize a private monopoly (Billy Rautenbach’s Green Fuel).

The “savings” in foreign currency are frequently negated by the higher costs passed on to businesses and households, making our exports less competitive and our cost of living unbearable.

​The socio-economic impact of these high prices is nothing short of catastrophic.

In an economy where over 80% of the population survives in the informal sector, fuel is the lifeblood of survival.

When diesel prices jump by 16% in a single week, the ripple effect is immediate.

Commuter fares for the urban poor, who already spend a significant portion of their meager income on transport, skyrocket instantly.

The cost of basic commodities like bread and mealie-meal rises as manufacturers and retailers pass on the increased logistics costs.

For a nation where millions are reeling under unimaginable poverty and food insecurity, these fuel price adjustments are not just economic statistics; they are a direct assault on the right to a dignified life.

Critics of this analysis often cite Zimbabwe’s landlocked status as a justification for higher costs, yet this argument holds no water when compared to Zambia.

Zambia has successfully reformed its procurement model by allowing for greater transparency and leveraging its own pipeline and storage infrastructure more effectively.

By fostering a more competitive environment and maintaining a stable exchange rate, Zambia has shown that being landlocked is not a death sentence for affordable energy.

Zimbabwe, on the other hand, remains hamstrung by a reliance on expensive road trucking for fuel distribution and a pipeline system that, while efficient on paper, is bogged down by administrative fees and handling charges that lack public oversight.

​If the government is truly serious about protecting citizens from global shocks, it must look inward and implement radical reforms.

First, there must be an immediate and comprehensive review of the fuel tax structure.

Eliminating or significantly reducing the Debt Redemption Levy and the Carbon Tax would provide instant relief.

Second, the mandatory ethanol blending policy needs to be liberalized.

The government should allow for competition in the ethanol supply chain and ensure that the price of local ethanol is pegged to international benchmarks rather than protected monopoly rates.

Opening up the sector would drive down costs and ensure that the benefits of local production are actually felt by the people.

Furthermore, Zimbabwe must invest in improving the efficiency of the Beira-Harare pipeline and reducing the bureaucratic red tape at our ports of entry.

A more streamlined procurement process that encourages private players to compete on a level playing field would break the current trend of price-fixing and artificial shortages.

There is also a desperate need for a genuine, transparent Strategic Reserve Fund that can be used to subsidize prices during global crises like the current Middle East conflict, rather than simply being a line item on a tax invoice.

Ultimately, the high cost of fuel in Zimbabwe is a symptom of a deeper governance crisis.

It reflects a choice to prioritize state revenue and protected interests over the welfare of the ordinary citizen.

As long as we continue to pay the highest prices in the region for a basic necessity, our industry will remain stagnant, our people will remain poor, and our economy will remain uncompetitive.

The global market may set the price of oil, but it is our own government that sets the price of misery at the pump.

It is time for a policy shift that recognizes that affordable fuel is not a luxury, but a fundamental requirement for the socio-economic justice that every Zimbabwean deserves.

• Tendai Ruben Mbofana is a social justice advocate and writer. To directly receive his articles please join his WhatsApp Channel on: https://whatsapp.com/channel/0029VaqprWCIyPtRnKpkHe08