CCZ Urges Government to Cut Fuel Taxes as Zimbabwe Fuel Prices Surge

Grocery shopping in Zimbabwe amid rising costs

The Consumer Council of Zimbabwe (CCZ) has called on the government to temporarily review fuel taxes, levies, and administrative charges to help ease pressure from rising Zimbabwe fuel prices. The appeal comes as the latest fuel price increase in Zimbabwe pushes diesel to US$2.05 per litre, up from US$1.52, while petrol (E5) has climbed to US$2.17 from US$1.56 before March 4, 2026.

CCZ chief executive Rosemary Mpofu said while rising global oil prices linked to Middle East tensions are a key factor, domestic pricing structures are significantly shaping the cost of fuel in Zimbabwe.

“However, the ZERA price build-up also shows that the final pump price is not determined by import cost alone,” Mpofu said. “It includes taxes and levies, administrative charges, blending costs, distribution costs and margins.”

According to the fuel price build-up by Zimbabwe Energy Regulatory Authority (ZERA), taxes and levies alone account for US$0.422 per litre on diesel and US$0.857 per litre on petrol (Blend E5).

“This means the government… could still cushion consumers by reviewing the domestic components of the fuel price,” she added.

Mpofu urged authorities to act swiftly to mitigate the fuel price crisis in Zimbabwe, proposing targeted short-term interventions.

“CCZ therefore urges Government to act in the short run by temporarily reviewing selected fuel taxes, levies and administrative charges; prioritising relief for public transport and essential food supply chains; and intensifying monitoring of fares and basic commodity prices to curb speculative markups,” she said.

The consumer watchdog warned that rising petrol prices in Zimbabwe are already feeding into inflation and increasing the cost of basic goods. CCZ said the low-income urban family basket for a household of six stood at ZWG20,450.90 (about US$600.48) in February 2026, with key items such as margarine, tea leaves, fresh milk, and tomatoes already showing price increases.

“These are among the products that tend to respond quickly to transport and distribution cost increases,” Mpofu noted.

In practice, the first-round effects of the fuel price increase in Zimbabwe in 2026 have already been seen in commuter fares, milk and bread distribution, fresh produce, and frequently purchased grocery items.

“For low-income households, every extra dollar spent on transport reduces what is available for food, rent, school needs, and health care,” she said.

As fuel prices in Zimbabwe remain elevated, pressure is mounting on the government to balance external shocks from global oil markets with internal policy adjustments.

Analysts say reviewing taxes and levies could provide short-term relief, even as longer-term structural challenges continue to drive the fuel price crisis in Zimbabwe.

Zimbabwe fuel prices