- Zimbabwe's fuel prices for petrol and diesel have remained unchanged at US$1.53 and US$1.52 per litre, respectively, in May
- The global average petrol price has decreased to approximately US$1.26 per litre, while diesel is around US$1.18 per litre
- Factors contributing to the static fuel prices in Zimbabwe include high taxes and levies imposed by the government
Harare- Zimbabwe’s fuel prices have remained static for both petrol and diesel in May, according to energy regulator, Zimbabwe Energy Regulatory Authority (ZERA).
Petrol continues to retail at US$1.53 per litre, while diesel holds steady at US$1.52 per litre.
This price stagnation persists despite a significant decline in global oil prices, which have plummeted to four-year lows, dropping by 18% since the beginning of 2025.
These figures position Zimbabwe’s fuel prices among the highest in the region.
The global oil market has experienced a notable downturn, with crude oil prices reaching their lowest levels since 2021. This decline, driven by a combination of oversupply, weakened demand from major economies, and geopolitical stabilisation in key oil-producing regions, has resulted in an 18% reduction in oil prices year-to-date.
This has reduced the global average petrol price to approximately US$1.26 per litre and diesel to US$1.18 per litre as of early May. In the SADC region, countries like South Africa, Zambia, and Botswana have adjusted fuel prices to reflect these global shifts, albeit to varying degrees.
For most oil-importing nations, such a drop typically translates into lower fuel costs at the pump, as governments and fuel retailers adjust prices to reflect cheaper import costs.
However, Zimbabwe’s unchanged fuel prices suggest a disconnect between global market trends and local pricing dynamics.
The economic and social implications of Zimbabwe’s high fuel prices are stark when viewed regionally.
Zimbabwean transporters face higher operational costs than their South African counterparts, reducing their competitiveness in regional trade.
The agricultural sector, critical to Zimbabwe’s economy, is similarly disadvantaged, as farmers pay more for diesel-powered machinery than peers in Zambia or Botswana.
These high costs contribute to inflationary pressures, as businesses pass on expenses to consumers, further straining Zimbabwe’s inflation-prone economy.
This anomaly warrants a closer examination of the factors that may be insulating Zimbabwe’s fuel market from global shifts.
One explanation for the price rigidity lies in Zimbabwe’s fuel pricing framework, which is heavily influenced by a combination of taxes, levies, and foreign exchange considerations. The government imposes significant duties on fuel, including the Strategic Reserve Levy, carbon tax, and Value Added Tax (VAT), which constitute a substantial portion of the pump price.
These fixed costs may limit the extent to which global price declines can be passed on to consumers. Additionally, Zimbabwe’s reliance on imported fuel, paid for in US dollars, introduces complexities related to foreign currency availability and exchange rate volatility.
Even as global oil prices fall, the cost of securing foreign exchange to import fuel may counteract potential savings, keeping retail prices elevated.
Therefore, ZERA’s decision to maintain fuel prices at US$1.53 per litre for petrol and US$1.52 per litre for diesel, despite an 18% decline in global oil prices, highlights the complexities of its fuel pricing model.
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