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Mnangagwa\u2019s Tax Burden Makes Zimbabwe Fuel the Most Expensive in the Region<\/p>\n<\/p><\/div>\n
Tinashe Sambiri\u2013 Zimbabwe motorists continue to pay some of the highest fuel prices in the region, with petrol selling for over US$2.20 per litre, while neighbouring Zambia records significantly lower prices averaging around US$1.41.<\/p>\n
Authorities have repeatedly blamed global oil price pressures, claiming Zimbabwe is simply responding to international market forces. Critics, however, argue this explanation does not hold when compared to regional counterparts facing the same challenges.<\/p>\n
During the same period of global volatility, Zambia also faced sharp increases in international fuel prices\u2014diesel surged by nearly 92% and petrol by about 63%. Yet the country managed to shield consumers from the worst effects.<\/p>\n
Economic analysts attribute the difference to policy choices. Instead of maintaining high tax levels, the Zambian government temporarily removed certain levies, including excise duty and VAT. \u201cThey did not create complex subsidies; they simply reduced the tax burden on consumers,\u201d said one economist, speaking on condition of anonymity.<\/p>\n
The result has been clear. Even amid global price shocks, fuel in Zambia remained relatively affordable, with petrol around US$1.41 per litre and diesel approximately US$1.54.
In contrast, Zimbabwe claims to have cut some taxes, including a reported US$0.54 reduction on diesel. Despite this, fuel prices remain elevated\u2014diesel at US$2.11 and petrol at US$2.23 per litre.<\/p>\n
Experts point to the country\u2019s tax structure as the main driver of high prices. \u201cZimbabwe is still collecting a significant amount in taxes and levies per litre of fuel, and that is what is keeping prices high,\u201d another economist said. \u201cNearly 40% of what consumers pay is made up of taxes such as excise duty, carbon tax, and other levies.\u201d<\/p>\n
This has created a significant price gap between Zimbabwe and its neighbours, with Zimbabweans paying nearly US$0.80 more per litre compared to Zambian motorists, making the country one of the most expensive in the region.
Critics argue that the cause is domestic policy, not international markets. <\/p>\n
Zimbabwe\u2019s ethanol blending policy, which mandates the purchase of fuel mixed with locally produced ethanol priced above global rates, further increases costs. \u201cConsumers are effectively paying more due to local policy choices, not global pressures,\u201d said another analyst.<\/p>\n
While Zambia chose to reduce government revenue to protect its citizens, Zimbabwe has maintained high taxes. \u201cThis is not just a fuel pricing issue; it reflects broader policy priorities,\u201d one economist noted. \u201cOne government chose to protect consumers, while the other has allowed the burden to remain on the public.\u201d<\/p>\n
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