Mthuli Ncube Signals "Fuel Buffer" as Global Oil Prices Breach $110/Barrel

Finance Minister Mthuli Ncube 

Bulawayo / Harare, Zimbabwe- Speaking at a fundraising luncheon for Ingutsheni Central Hospital, Finance Minister Mthuli Ncube moved to reassure the nation that Zimbabwe has secured enough fuel supplies to last at least through June 2026. This intervention comes as the global oil market faces its most severe supply shock in decades following the closure of the Strait of Hormuz.

The sudden surge in petrol and diesel prices is directly linked to the military escalation in the Middle East.

• The Incident: Following strikes on February 28, the Strait of Hormuz, through which 20% of the world's oil flows, has become impassable for most tankers.

  
  

• The Price Shock: Brent crude has skyrocketed from US$70 to a peak of US$113 per barrel in less than a month.

• The Local Impact: As a "price taker," Zimbabwe's fuel prices (currently capped at US$2.05 for Diesel and US$2.17 for Petrol) face immense upward pressure to track these global landing costs.

  
  

To prevent the "stock-outs" that characterized previous economic shocks, the Ministry of Finance has negotiated specific credit and supply lines:

1. Letters of Credit (LCs): Financial instruments guaranteed by the central bank to ensure international suppliers are paid despite foreign currency fluctuations.

2. Strategic Reserves: Utilizing the NOIC (National Oil Infrastructure of Zimbabwe) storage facilities to hold a 90-day buffer of physical product.

3. Negotiated Supply Lines: Direct agreements with major regional and international traders to prioritize the Beira-Harare pipeline flow.

While the Minister has guaranteed availability (no queues), the price remains a separate challenge. With Brent crude at $107+, ZERA may eventually be forced to adjust the pump price upward to maintain the viability of private fuel players, even with the government's financial safety nets in place.

Mthuli Ncube fuel supply Zimbabwe 2026