Government has temporarily removed taxes on diesel in a move authorities say is aimed at shielding consumers and productive sectors from rising global fuel prices and stabilising the domestic economy.
In a press statement issued on Wednesday, Finance Minister Mthuli Ncube announced that Government had taken what he described as a decisive intervention to ease pressure triggered by international oil market disruptions.
“The Government of Zimbabwe… has taken decisive and unprecedented action to cushion citizens and industry from the adverse effects of rising global fuel prices,” Ncube said.
The measure comes against a backdrop of escalating geopolitical tensions in the Middle East that have pushed up global oil prices, increasing Zimbabwe’s fuel import costs and threatening broader price stability.
According to the minister, the developments “have a direct bearing on Zimbabwe’s fuel import costs, with potential knock-on effects on production, transportation, and the general price level.”
Government resolved to remove all taxes levied on diesel with effect from April 3, 2026. The suspended charges include Excise Duty, the ZINARA Road Levy, Carbon Tax and the Strategic Reserve Levy.
“These taxes collectively amount to USD 0.54 per litre, representing a significant proportion of the retail price of diesel,” Ncube said, adding that the relief could lower logistics costs by as much as US$0.265 per litre.
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However, authorities clarified that taxes and levies on petrol will remain unchanged.
The Finance Ministry framed the move as a fiscal sacrifice intended to contain inflationary pressures and support economic activity.
“This bold and unprecedented measure reflects Government’s commitment to protecting both consumers and productive sectors from external shocks, while safeguarding macro-economic stability,” Ncube said.
Government expects the tax suspension to cushion businesses from escalating operating costs, stabilise prices of basic goods and services, anchor inflation expectations and support ongoing economic recovery momentum.
“Government is, therefore, making a deliberate and significant fiscal sacrifice in the national interest, prioritising economic stability and the welfare of citizens over short-term revenue considerations,” he added.
Authorities also signalled that further interventions remain possible depending on global developments.
“Government will continue to closely monitor global developments and stands ready to implement further measures, where necessary, to safeguard the economy, as well as ensure availability of sufficient fuel stock in the market,” Ncube said.
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