Zimbabwe has removed the levy on diesel while significantly reducing the levy on gasoline to keep fuel prices down.
Finance Minister Mthuli Ncube said in addition to this, the government had also released fuel from the strategic fuel reserves as it tries to stabilize prices following significant pressure on global fuel prices due to the Russia-Ukraine conflict.
“This week, the government completely removed the levy on diesel i.e. brought it to zero cents, and significantly dropped the levy on petrol. This action prevented the price of fuel from breaching the 2 U.S. dollar per liter mark,” Ncube said at a press conference.
Ncube did not indicate the quantity of fuel that has been released from the strategic fuel reserve although last month, Information Minister Monica Mutsvangwa said the government was making efforts to improve the strategic fuel reserve, with 40 million U.S. dollars worth of fuel having been procured in the last six months.
“The intention is to maintain at least a 30-day stock cover, which, at the current consumption levels, translates to 150 million liters. This fuel would be released onto the market to plug supply gaps or to stabilize prices,” Mutsvangwa said.
The price of fuel in Zimbabwe has continued to rise since the start of the conflict, and last week government raised the price of gasoline to 1.77 U.S. dollars per liter from 1.73 U.S. dollars. Diesel now costs 1.88 U.S. dollars per liter from 1.76 U.S. dollars.
Last month, the government resumed gasoline blending with ethanol as part of measures to reduce fuel prices. Enditem